By Alexa Barnes
VCU Capital News Service
Virginia drivers are paying almost $4 a gallon of gas, with prices up 90 cents from last year’s average amid ongoing global tensions.
The statewide average was roughly $3.93 per gallon of gas on April 23, according to the American Automobile Association. Prices had started to trend downward but continue to fluctuate, with higher prices in Northern Virginia and other metro areas.
The spike in costs is tied to disruption of tanker movement in the Strait of Hormuz due to the Iran war. The vital trade route saw approximately one-fifth of global oil travel through it during 2024, according to the U.S. Energy Information Administration
Nationally, gas prices hit $4.16 this month, according to Gas Buddy. The last time the national average reached that price was in 2022, according to AAA. Prices started to decline following the initial announcement of a two-week ceasefire between the U.S. and Iran. The ceasefire was extended on April 21, but Iranian ports remain blockaded by the U.S. and gas prices currently remain elevated.
For Virginians, the increase could shape daily decisions around commuting and spending. Consumer use of electric bicycles and scooters increased in 2022 when gas prices last hit over $4 a gallon, according to the Michigan-based Automotive News outlet.
The Greater Richmond Transit Co. has not seen an increase in bus ridership directly tied to gas prices, according to communications manager Ashley Porter. But the organization is monitoring ridership data.
“Affordability does make up [a big role], especially in this community, how people get around,” Porter said.
GRTC operates on a zero-fare model, where riders do not have to pay to ride, which makes transit an affordable option. Riders can also bring their bicycle onto the bus, to help navigate around their destination point.
The company is somewhat insulated against gas price volatility, according to Porter. Its fixed-route and Pulse services operate on compressed natural gas. The fleet is diversified with a variety of fuel types, to help limit the impact of rising gasoline prices on the budget and service.
Additionally, GRTC negotiates diesel prices at least a year out, providing additional cost stability, Porter said. The cost of diesel in Virginia currently averages $5.64, the 20th highest in the country according to AAA.
Wide-reaching Ramifications
Muhammad Sahimi, a professor of chemical engineering and material sciences at the University of Southern California, warned of the wide-reaching ramifications of the conflict with Iran.
“This is going to affect everything,” Sahimi stated over email.
Sahimi warned the disruption in trade has not only impacted oil and gas, but other supplies including petrochemicals, fertilizers, nitrogen, hydrogen and helium.
“Any industry or entity that relies on oil and gas as a source of energy will be affected, from car makers, to transportation to power plants, etc,” Sahimi stated.
Robert Kaufmann, a professor of environmental science at Boston University, also warned that prices won’t only be increasing at the pump.
“Just about everything in this economy is moved using either motor gasoline or diesel fuel,” Kaufmann said. “So what that means is getting products to producers and finally to us consumers is more expensive now.”
Kaufmann said this results in an inflationary effect, which reduces consumers’ disposable income and slows economic activity.
“Many people who live on a tight budget will find themselves going out to the movies less, going out less for food or takeout,” Kaufmann said. “So we’ll notice, for lack of a better term, less fun in our life.”
Last month, Virginia Republicans proposed a 90-day “gas holiday” to ease some of the financial strain.. This would pause the state’s gas tax, which is 32 cents per gallon of regular gasoline and 33 cents for diesel.
Republicans urged Democrats to help enact the moratorium when the General Assembly reconvenes, either through amending current legislation, or when they meet to tackle the budget.
