CREA estimates additional US fuel costs at $160 billion — OilPrice

The Centre for Research on Energy and Clean Air (CREA) estimated the United States' additional fuel costs associated with price increases due to the war in the Middle East at $160 billion. This is the largest share of CREA's estimated global increase in fuel costs of $468 billion, OilPrice reports.

Per capita cost estimate

According to CREA's calculations, the additional costs average $471 per US resident. At the same time, the analytical center put the global average at $60 per person.

OilPrice notes that comparing the national figure with the global average has limitations, as they concern different calculation scales. CREA's estimate applies specifically to fuel costs, rather than total household spending on all types of energy.

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Dependence on vehicle fuel

CREA explained the greater financial burden on Americans by high oil consumption, significant reliance on private vehicles using petroleum fuel, and a slow transition away from gasoline and diesel. In the center's view, this makes households, carriers, and farmers particularly vulnerable to fluctuations in the global fuel market.

At the same time, OilPrice notes that countries in Europe and Asia are also feeling rising energy prices, including due to their dependence on gas and coal imports. The publication cites Germany as an example, where the average diesel price was 2.30 euros per liter, or $9.73 per gallon.

Energy prices in other regions

According to the publication, Japan, which is heavily dependent on imported energy resources, recorded record electricity prices after government subsidies were reduced. The United States is the world's largest producer of natural gas, but its status as a major oil and gas exporter also affects domestic prices, OilPrice notes.