- Gas prices in Utah rose to $4.16, exceeding the national average of $4.11.
- BYU economist Christian vom Lehn warns of further price hikes amid the Iran conflict.
- Resolution in Iran won't quickly stabilize prices; broader consumer costs may rise.
SALT LAKE CITY — As gas prices in Utah continued to soar above those seen just five weeks ago, an economist said Monday he expected them to likely get worse and for the pain to extend across numerous consumer costs in the months to come.
According to AAA, on Monday, the average price nationally for a gallon of unleaded regular gasoline was $4.11. In Utah it was $4.16.
Just prior to the military operation against Iran beginning on Feb. 28, AAA said the national average was $2.98.
"I think it's well appreciated that there is a lot of oil and economic traffic that goes through the Strait of Hormuz right there, and so any upheaval and conflict in that area is going to potentially open the door for a massive economic disruption to all parts of the world," said BYU associate professor of economics Christian vom Lehn during an interview with KSL.
"(There's) still plenty of room for things to get worse both in terms of oil and gas prices and other prices as a result of that disruption, just given the volume of traffic and trade that goes through that part of the world," he said.
The economist said it was hard to predict a peak for gas prices with no military resolution currently in sight.
The highest recorded national average gas price, according to AAA, was $5.01 set back on June 14, 2022.
Vom Lehn said it was hard to forecast gas prices hitting $5.00 this summer, but he also didn't rule it out, given the circumstances.
Regardless, he said resolution in Iran would not mean a quick economic fix, and the increase in gas and oil prices could result in other increases in consumer prices as companies pass on the added costs.
"I think we need to brace ourselves that this is just beginning," vom Lehn said. "Even if a resolution was achieved this week — suppose that we somehow achieve resolution, whatever that looks like — and economic traffic through that region of the world is restored and everything largely reverts back to the past, that disruption is still going to carry shockwaves that hit us for months and months to come."
The sticker shock continued to be real for commuters, some of whom were stopping for gas at downtown stations.
"I think the regular is what, $4.59 right now?" said Michelle Leonardi as she looked up at the posted price on a sign. "It is a lot, especially because you need it in your car to drive."
Henrique Vaz said he drives over 60 miles each day commuting back and forth from Utah County, and he said the increase has made a difference in his budget.
"I don't know where it's going, but I hope it stops," Vaz said. "Some other things will have to be put on hold just so I can come to work."
