The ongoing tensions and conflict involving Iran are now starting to affect everyday life in the United States, especially when it comes to fuel prices and delivery costs.
Major companies like Amazon have already announced extra charges, while airlines are also increasing baggage fees to deal with rising fuel expenses.
Fuel prices in the US have gone up sharply in recent days. The average price of petrol rose to $4.09 per gallon on Friday, 3rd April. This is more than a dollar higher compared to just before the conflict began and is the highest level seen since August 2022. Diesel prices have also jumped significantly, rising from $3.64 per gallon a year ago to $5.33 now, according to data from the American Automobile Association (AAA). Diesel is widely used across industries like farming, construction, and transportation, so any increase directly impacts multiple sectors.
Companies pass on rising costs
As fuel becomes more expensive, companies are starting to pass on these costs to customers. Amazon has announced that from 17th April, it will introduce a 3.5% fuel surcharge for third-party sellers using its platform. Similarly, the United States Postal Service has proposed an 8% temporary surcharge on package and express mail deliveries.
If approved by the Postal Regulatory Commission, this surcharge will come into effect from 26th April and continue until 17th January, 2027. The move is aimed at managing the growing transportation costs driven by high fuel prices.
Global supply chain disruptions expected
This development has also affected global oil supplies due to disruptions in the Strait of Hormuz. By blocking the crucial waterway, the global economy has been negatively affected, with millions of barrels of oil supply being affected.
There have been reports that Asia is the first region to feel the impact, with several countries implementing rationing measures. Meanwhile, Europe can expect shortages in mid-April. As it takes 35 to 45 days for oil supplies from the Gulf to reach the US, the country will experience the impact much later.
Experts say fuel prices in the US will continue to rise, and some shortages could begin by late April or May, particularly in states like California, which are more isolated from the country's fuel supply network.