Motorists worldwide are facing higher fuel prices following the illegal war imposed by United States (US) and Israel on Iran. 

 

In the US, the average price for a gallon of regular petrol rose from $2.94 in February to $3.58, according to data from AAA Fuel Prices. Some states have reported prices above $4 per gallon, with California exceeding $5 per gallon for the first time in more than two years.

 

Data from Global Petrol Prices shows that at least 85 countries have raised petrol prices since the initial attacks on Iran on February 28. Some nations announce changes only at the end of the month, suggesting further increases in April.

 

Vietnam recorded the largest rise, nearly 50 percent, from $0.75 per litre of 95-octane on February 23 to $1.13 on March 9. Laos saw a 33 percent increase, Cambodia 19 percent, Australia 18 percent, and the US 17 percent.

 

Asian countries are among the most affected due to their reliance on the Strait of Hormuz, the main passage connecting the Gulf to the Gulf of Oman. Japan imports 95 percent of its oil from the Gulf, while South Korea imports 70 percent.

 

Japan instructed its oil reserve sites to prepare for a possible release of strategic reserves on March 8. South Korea introduced a maximum price cap on petrol and diesel on March 9 for the first time in 30 years.

 

In South Asia, countries with smaller financial buffers and limited reserves are feeling the impact more severely. Bangladesh has ordered all public and private universities to close.

 

In Pakistan, government offices are operating a four-day workweek, schools are closed, and a 50 percent work-from-home policy has been implemented.

 

In Europe, Group of Seven finance ministers held an emergency meeting on rising prices. French President Emmanuel Macron raised the possibility of releasing 20-30 percent of emergency strategic reserves to ease pressure on consumers.

 

Rising oil prices are also driving up food costs, affecting fertilisers, transportation, and logistics. Economist David McWilliams told Al Jazeera, “The lifeblood of the global economy is transport. It’s getting stuff from A to B – it’s a logistics problem, a supply chain problem, and ultimately transportation is the energy of the global economy.”

 

Economists warn of stagflation, increasing inflation and rising unemployment, pointing to past oil shocks in 1973, 1978 and 2008 that were followed by global recessions. In lower-income countries, higher oil prices could quickly lead to food shortages as populations spend a larger share of income on essentials.