AAA: Connecticut Drivers Could Pay Price for Iran Sanctions
Gas Statewide Already Approaching $3
The US re-imposing of economic sanctions on Iran could lead to higher gas prices across Connecticut – where drivers are already paying an average of almost $3 a gallon, the most they've paid in years.
President Trump announced earlier today that the US would be re-imposing economic sanctions against Iran and withdrawing from the Iran Nuclear Deal. The reinstated sanctions could lead to increased crude oil prices which would mean increased gas prices later this summer.
The average price of gas across Connecticut today is $2.98, already 47 cents higher than on this same day last year. Prior to Trump's announcement, gas prices were expect to continue to rise until around Memorial Day, but the sanctions could mean that gas prices will continue climbing deep into the summer driving season.
"This is a scenario of pump prices possibly going from bad to worse" says Amy Parmenter, spokesperson for AAA in Greater Hartford. "The timing, just as we head into the busy summer driving season, is not ideal".
Find the latest gas prices for Connecticut at GasPrices.AAA.com.
As the Iran sanctions relate to gas prices, what you need to know:
- Crude oil prices will see the immediate impact.
- Ahead of today’s announcement, speculation was already driving crude oil prices higher in the market. On Monday, WTI reached a new high at $70.84/bbl. Tuesday market prices were up and down, but WTI is expected to close at $70.03.
- Motorists will NOT see immediate increases at the pump.
- It can takes weeks, usually month(s), for the market increase to translate over to retail prices.
- The retail increase will be dependent on how expensive crude oil price goes and the duration at which crude sells at the higher price point in the market. If in the end crude oil remains at $68-$70/bbl, prices will not be that much more expensive this summer than they are now. If crude sells for $70+/bbl for an extended amount of time, the national average could hit $3/gallon this summer, 20 cents higher than it is today.
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