Global tensions tied to Iran war may impact gas prices in Macon, economist says
A Wesleyan College economics professor explains how global conflicts can affect what drivers in Middle Georgia pay at the pump.
FORT VALLEY, Georgia (41NBC/WMGT)- Gas prices are rising in Middle Georgia, and an economics professor says global tensions like the war in Iran may be part of the reason.
Dr. Ying Zhen, an economics professor at Wesleyan College, says events happening thousands of miles away can quickly impact what drivers pay at the pump.
“Gasoline prices depend heavily on crude oil, which is traded in a global market. If war disrupts supply anywhere in the world, the global supply shrinks and that pushes gasoline prices higher even here in the U.S.,” Zhen said.
Zhen says the average price for regular gas in Macon is about $2.95 per gallon, which is up roughly ten cents over the past week.
She explains that crude oil makes up the largest portion of gasoline costs, meaning changes in the global market often lead to higher prices at gas stations.
“When crude oil prices rise in the global market due to changes in supply or demand, refineries and gas stations pass those higher costs along to consumers and we pay more at the pump locally,” Zhen said.
As tensions overseas continue, drivers in Middle Georgia say they are starting to feel that tension at the pump.
Jake O’Brien drives a vehicle that requires diesel fuel. He says the cost used to be between three dollars and twenty cents and three dollars and fifty cents per gallon, but his most recent fill up was closer to four dollars and fifty cents.
“There has been an increase in about a three week period and it’s gone up roughly for diesel probably about a dollar a gallon,” O’Brien said.
Another driver says the recent increases may force her to adjust her monthly budget.
Lauren Trojan says with gas prices climbing, she may have to cut back on some expenses.
“I’m gonna have to probably look and see if there is a streaming service I’ll have to take out, just to make up for the gas,” Trojan said.
