The average price of gasoline across the nation has been steadily rising since tensions escalated with Iran. In Killeen, Texas, Charles Rice has noticed this firsthand, with fuel costs increasing by $1.28 per gallon. This hike translates to an additional $90 monthly expense for filling up his truck.
While pumping gas at Casey’s General Stores, Rice commented, “$3.96 instead of $4.12 or $4.20 or what have you, so that’s what brought me in here today.” Casey’s, the third-largest convenience store chain in the U.S., operates nearly 300 locations spread across 19 states, with two-thirds of them situated in towns with populations of 20,000 or fewer.
Casey’s CEO, Darren Rebelez, anticipates a 20% surge in store visits during Memorial Day weekend, marking the start of their “100 days of summer” promotion. “The consumers have been hanging in there, and we tend to price our fuel at the lower end,” Rebelez noted, highlighting the company’s strategy.
Before the Middle East conflict flared up in February, gas prices nationwide remained under $3 per gallon. However, the current average has climbed to $4.50, a rise of more than $1.50 since the onset of the war, according to AAA.
Looking ahead, the U.S. Energy Information Administration’s forecast from May 12 predicts that retail gasoline prices will average $3.88 per gallon for the remainder of the year, with a slight decrease to $3.62 per gallon by 2027.
Around the country, a gallon of gas now costs an average of $4.50, up more than $1.50 since the war started, according to AAA. And in a May 12 forecast, the U.S. Energy Information Administration estimated that retail gas prices will average $3.88 per gallon over the rest of the year and $3.62 per gallon in 2027.
Consumers are making some trade-offs in other areas due to the rising cost of gas. Sales of Casey’s self-branded snacks, which sell for about a dollar less than national brands, are up.
“People normally want things that are going to be a little bit more affordable,” said Tiffany Bishop, a customer. “Especially when you have kids that want to pick up snacks.”
Rebelez said a lot of consumers will come to Casey’s because it’s a more affordable option.
“When we get into times like this, where you know, budgets are stretched a little bit, we’re viewed as a better value option,” Rebelez said.
