Las Vegas Valley gasoline prices hit their highest mark in nearly two years on Thursday, with the potential for $5 per gallon prices approaching, as the war in the Middle East continues to affect the oil market.
The average price for a gallon of regular unleaded gas in Southern Nevada on Thursday was $4.46, which is the most expensive fuel has been in the Las Vegas Valley since May 9, 2024, the last time prices hit that same mark, according to AAA data tracked by the Review-Journal.
GasBuddy lead petroleum analysis, Patick De Haan, said on March 2 that gas prices in Las Vegas could increase as high as 60 cents per gallon by the end of the month, as the first effects of the war are felt on gas prices. Ten days later, gas prices have already increased by 76 cents per gallon. Wednesday’s price marked an 86-cent spike over the last month, according to AAA.
‘Sky could be the limit’
President Donald Trump hasn’t indicated an end is in sight to the war and Iran’s new supreme leader Ayatollah Mojtaba Khamenei warned of retaliatory strikes and said the Strait of Hormuz will remain closed, which cuts off a significant passageway for the international transport of oil and other goods.
“It’s solidified that the sky could be the limit,” De Haan said Thursday about gas prices. “Because there’s been a doubling down on both Trump’s side and the new Ayatollah, signaling that they’re going to continue this maximum pressure campaign to push prices up. You could see five bucks in Vegas if things don’t change; we’re going to head closer to that number.”
With the continued closure of the Strait of Hormuz, 20 million barrels of oil per day are not being moved to the global market and prices will continue to rise, even if reserves are tapped in the U.S. and internationally, De Haan said.
“Every day, it’s going to become more difficult for supplies to catch back up,” De Haan said. “Where we’re immediately heading is probably somewhere in the ballpark of another increase of 10 to 25 cents” in Las Vegas.
The price for a barrel of U.S. crude oil jumped back to $100 per barrel on Thursday, with the potential to move toward $150 a barrel as the Strait of Hormuz, which is responsible for moving a fifth of the world’s oil, remains closed.
Diesel increases
The rising oil prices are also increasing diesel prices, and the trickle-down effect will be felt by consumers.
“Diesel is the fuel that powers everything in the US economy, trains, trucks, farmers and diesel prices going up an average of $1.10 a gallon so far,” De Haan said. “It’s going to be huge collateral damage to the U.S. economy as that starts to trickle down. Fuel surcharges, higher costs of doing business, grocery prices and delivery costs, all of it goes up.”
Travel costs
The travel industry that Las Vegas’ tourism-based economy is reliant upon is also being hit by surging fuel prices.
“I’m talking about Las Vegas and jet fuel prices are just monstrous,” De Haan said. “Airlines already are warning and passing along increases. I checked an airfare I booked a couple of weeks ago and it’s up 21 percent in price. This airfare is for August. So definitely can tell that airlines are going to have to pass along big increases pretty quickly here.”
The spike in gas prices also comes as spring break is about to start for the Clark County School District and others in neighboring states such as California, Arizona and Utah.
“Gasoline demand increases this time of year as the weather warms up and more drivers hit the road.” John Treanor, AAA spokesman said in a statement. “Crude oil prices play a major role in what drivers pay at the pump, and prices have surpassed the $100/barrel mark multiple times in recent days.”
The Associated Press contributed to this report.
Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on X.
