U.S. gasoline and diesel prices hit record highs, tightening household and business budgets

Gasoline prices in the United States rose to an average of $4.36 per gallon, up $1.42 since the conflict with Iran began on Feb. 28, while diesel hit a record $6.30 per gallon, according to data from GasBuddy. The surge is prompting households and businesses to tighten budgets and reconsider spending.

Betsy Rosado, a mother of five in Spring Hill, Florida, said the higher fuel costs forced her to reduce in-person therapy for her toddler with developmental and respiratory issues, switching to virtual sessions instead. "You have to manage your bills, your food, everything has to be budgeted," she told reporters.

Patrick De Haan, head of petroleum analysis at GasBuddy, warned that many states are experiencing "monumental jumps" in fuel prices and that without a de-escalation of geopolitical tensions, the upward trend is likely to continue.

Truck drivers also feel the impact. Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association, said each $1 increase in diesel adds roughly $400 to a trucker's fuel bill, with some weeks costing an extra $800. He noted that higher trucking costs are passed on to shippers, raising prices for a broad range of consumer goods.

In Illinois, farmer John Bartman reported that diesel consumption of 300 gallons per day now costs about $1,800 daily, and fertilizer prices have climbed to over $120 per acre. He expressed concern that rising expenses are discouraging younger farmers from staying in the industry.

Analysts said the combination of higher fuel and input costs could ripple through the supply chain, affecting prices for food, clothing and other products across the economy.