“If the price of oil continues to go up, it could essentially be completely gobbled up by a rise in the price of oil,” said Patrick De Hann with GasBuddy.
DALLAS — Inflation rose for a second consecutive month, 3.8% in April compared to a year earlier, as President Trump said that the financial situation of Americans is “not even a little bit” of a motivating factor for him reaching a deal to end the war in Iran.
“The only thing that matters when I’m talking about Iran, they can’t have a nuclear weapon,” Trump continued. “I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: we cannot let Iran have a nuclear weapon. That’s all.”
North Texas consumers, however, say they are feeling the pinch.
The average price for regular unleaded gasoline reached $4.50 a gallon nationally, according to AAA. In Texas, the statewide average climbed to $4.01 a gallon, more than 40% higher than the same time last year.
When Dallas resident J.J. Turner filled up his van Thursday morning, he paid more than $82. A year ago, he said, the same fill-up cost about $50.
“Yeah. A lot different. A whole lot different there,” Turner said.
Plano driver Alexie Pacheco said higher gas prices are “draining our pockets.”
“My car eats it up like a semi,” Pacheco said.
The financial pressure comes as the president has proposed temporarily suspending the federal gasoline tax, which adds about 18.4 cents per gallon. The proposal would require congressional approval.
“It’s a small percentage, but it’s still money,” the president said on Monday.
Industry analysts, however, questioned how much relief consumers would actually see.
Patrick De Haan, an analyst with GasBuddy, said any savings from a temporary tax suspension could quickly disappear if oil prices continue to rise.
“What really needs to happen is the strait needs to be reopened,” De Haan said of the continuing blockade of the Strait of Hormuz.” Consumers may see it for several days,” he said of a gas tax reduction, “but if the price of oil continues to go up, it could essentially be completely gobbled up by a rise in the price of oil.”
AAA reported gasoline prices increased another 25 cents per gallon this week, marking the second consecutive week of steep increases.
The broader impact of inflation is also weighing on household budgets. According to Moody’s Analytics, the typical American household is spending $266 more each month on the same goods and services compared with a year ago.
For Dallas driver Bobby Aunoo, an 18-cent reduction would not go far enough.
“No. I need a dollar at least,” Aunoo said. “At least a dollar.”
Meanwhile, crude oil prices climbed more than 4% Thursday, adding to concerns that fuel prices could continue rising in the weeks ahead.