More than a month into the Iran war, Vermonters are facing the strain of ballooning fuel costs as commuters wince at high prices at the pump.  

“It’s painful to the pocketbook,” said David Armstrong, who works in the construction industry, as he filled his truck at a gas station in Burlington on Friday. 

Armstrong commutes about 40 miles a day for work, he said, and it cost him over $123 to fill his tank, even with a discount program. That’s a steep increase from the approximately $90 he says he was paying prior to the Iran war. 

Fuel costs have risen dramatically across the U.S., but in Vermont, where motorists in more rural communities must travel long distances to get to jobs or to buy essentials, prices for gas and diesel have hit especially hard. 

Average gas prices in Vermont have risen to $3.99 per gallon as of April 2, and prices in northern counties like Orleans, Essex, Franklin and Grand Isle have all eclipsed $4, according to AAA’s gas price tracker. 

Vermont is just below the national average of $4.08 per gallon, but compared to the rest of New England, only Connecticut has a higher average price. 

American households have paid $8.4 billion more for gasoline over the past month compared to prices before the start of the war on Iran, according to analysis by congressional Democrats on the Joint Economic Committee. In response to U.S. and Israeli strikes against Iran, the country closed a vital naval passage between the Persian Gulf and the Gulf of Oman called the Strait of Hormuz, effectively cutting off much of the Middle East’s supply of crude oil and natural gas from the global market.

The average household in Chittenden County uses 575 gallons of gasoline annually, which, if calculated for a year, would cost around $2,300 if Friday’s gas prices went unchanged, according to data from the Chittenden County Regional Planning Commission. Using the approximate cost of gas a year ago, a full year’s worth would cost $1,800, meaning that Chittenden County households would see an increase of $42 a month and around a $500 bump for the year.

Vermonters, who drive more and have fewer alternatives to driving compared to most states, are more exposed to price changes, according to Greg Rowangould, director of the Transportation Research Center and associate professor in the Department of Civil and Environmental Engineering at the University of Vermont. 

The Transportation Research Center studied how Vermonters reacted to the last major increase in fuel prices back in 2022 at the start of the war in Ukraine. It found that people across the spectrum, from remote rural communities to Burlington, were forced to cut down on travel. Respondents said they took fewer trips, favored closer destinations and opted to chain tasks together rather than take multiple trips for essentials. 

Some drivers decided to cut back on non-essential travel, too, choosing to watch Netflix rather than going on a night out, according to Rowangould. 

“There are things that people do to try to avoid the costs,” Rowangould said. “But, of course, you can’t avoid all of it.” 

“We’re definitely driving less now,” Dennis DeSilvey said as he and his wife, Kathy, filled their hybrid car on Friday. After a career as a doctor, DeSilvey has to watch his budget much more closely since retiring. 

Meanwhile, Sarah McNamara, who works as a substitute teacher in Burlington, said she’s considering switching to commuting by bike or bus if the high prices stick around. She said her husband, who commutes to the Champlain Islands, has started talking with coworkers about carpooling to save money.

“It’s definitely going to be a new budget item, in a different category,” McNamara said of the fuel prices. 

Fuel cost increases will also hit homes using heating oil, propane and kerosene, according to Vermont Department of Public Service data. 

However, Vermont’s electric utilities mainly use long-term contracts with less exposure to sudden price spikes. New England’s electric grid largely relies on natural gas, nuclear, hydro and other renewable fuel sources, avoiding an immediate impact from global crude prices, according to Philip Picotte, a utilities economic analyst at the Vermont Department of Public Service. 

Disruptions in global supply — especially to liquified natural gas — will have some effect on New England’s electric prices in the medium-term, according to Picotte. 

Diesel fuel in Vermont has now reached $5.80 per gallon, outpacing the national average of $5.51, according to AAA, which could hit long-haul and delivery trucks especially hard. Diesel is also a main fuel source in dairy and other farming operations throughout the state. 

Fuel cost increases absorbed by local businesses would eventually be passed down to the consumer level, explained Ryan Bellavance, the president of Bellavance Trucking, which operates a fleet of nearly 100 trucks based out of Barre. Bellavance transports everything from construction materials to refrigerated food items, so increased costs could be felt across a wide range of products. 

Bellavance explained that fuel is already one of their largest expenses. With the recent price increase, it now might be their largest. Compared to the start of the year, prices have increased 31 cents per mile. Multiplied across their operation, that increase quickly becomes problematic.  

“It’s gonna be fine until the people stop buying, you know?” he said. “And then everything comes to a halt.”