No, you’re not imagining things — gas prices in Iowa jumped above $4 per gallon to start May. And things are only going to get worse, according to University of Iowa history professor Tyler Priest.
The average gas price in Iowa is $4.24, as of May 5 via GasBuddy. That’s up $1.31 from a year ago, when prices averaged $2.93.
Here’s how gas prices are going to affect you.
How high could gas prices go in Iowa?
Priest, who studies energy policy at the university, expects prices in the state to reach $5 a gallon soon. That, combined with the fact that the nationwide average price jumped 38 cents in the last week, is not normal, he said.
Right now, the U.S. isn’t feeling the worst of it. Priest said analysts are predicting that crude oil storage levels will dwindle by June. That’s when the real squeeze will start.
Iowa’s record high for gas prices is $4.76, set in June 2022 during a period of high oil prices driven in part by Russia’s invasion of Ukraine. In Des Moines, prices reached $4.78, according to AAA.
Even if the Iran War ends in the near future, it will take months to get trapped ships out of the Strait of Hormuz and to repair damages, according to Priest and NPR. Under current circumstances, investors aren’t preparing for an end to the war any time soon.
High gas, diesel prices will increase the cost of groceries and transportation
While high gas prices will affect you directly at the pump, the price of diesel has a much greater effect throughout the entire economy than gasoline does, Priest said.
Diesel is essential for transportation, which translates into higher prices at the grocery store. The doubled cost of diesel is also hitting farmers especially hard, Priest said, since it’s connected to the cost of importing fertilizer.
Priest said he wouldn’t be surprised if airlines cancel more flights as fuel becomes more scarce.
Regardless of global impacts, U.S. gas prices typically peak between April and June when refineries switch to a more expensive “summer blend” of gasoline, which functions better in warm weather.
Iowa drivers could start changing their driving habits. In an earnings call with investors in March, Casey’s CEO Darren Rebelez said retailers expect to see demand decline as prices reach $5 per gallon.
President Donald Trump says gas prices will go down ‘very substantially’ when Iran War ends
“I see it going down very substantially when this is over, I think very rapidly too, at levels that you’ve never seen because there’s a lot of energy out there, ships all over the world that are loaded up with it,” President Donald Trump said during a May 4 news conference. “They can’t do much with it because they got kidnapped by a pretty evil place. But we’re taking care of it.”
Though talks of a ceasefire are in the works, tensions rose after the U.S. launched “Project Freedom,” an effort to unilaterally reopen the Straight of Hormuz, on May 4.
On May 4, Iran launched attacks on the United Arab Emirates and the U.S. sank six small Iranian boats, which were targeting commercial vessels near the Straight of Hormuz, said Adm. Brad Cooper, commander of U.S. Central Command. Iran also launched missile and drone strikes on the UAE, sparking a blaze at an oil facility and leaving three people injured.
Where are the cheapest gas prices in Iowa?
Shelby County in western Iowa reported the lowest average at $3.78.
Gas Buddy reported that Casey’s stations in Davenport and Middletown still had gas for $3.38 on May 5. In Des Moines, many stations were selling gas for $4.29, marking the first jump above $4 per gallon.
USA Today reporter Greta Cross contributed to this article.
Lucia Cheng is a service and trending reporter at the Des Moines Register. Contact her at lcheng@gannett.com or 515-284-8132.
This article originally appeared on Des Moines Register: Gas prices go above $4 per gallon in Iowa. What else will get pricier?
Reporting by Lucia Cheng, Des Moines Register / Des Moines Register
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