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U.S. gas prices surpassed $4 per gallon for the first time since 2022 on Tuesday. The AAA national average reached $4.02, more than a dollar higher than when the conflict in Iran started on February 28. Both Brent crude, the global standard, and benchmark U.S. crude are trading above $100 per barrel, up from $70 before the conflict. Experts warn that higher prices will impact more than just gas stations. As transportation costs go up, businesses might raise prices on non-oil goods too. For example, the U.S. Postal Service has asked for a temporary 8% surcharge on certain products, including priority mail, to cover increased gas costs.
As oil exports through the Strait of Hormuz– where one-fifth of the world’s crude oil usually passes— remain halted, emergency oil reserves have been released to help relieve pressure, including reserves from the International Energy Agency and the U.S. Some foreign reliance is necessary even though the U.S. is a net oil exporter because its light crude oil is different from the heavy crude its refineries are built to process. A recent AP-NORC poll found that 45% of American adults are “very” or “extremely” concerned about affording gas, up from 30% in 2024.
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As presidents of four of Pennsylvania’s leading chambers of commerce—the Chester County Chamber of Business and Industry, the Delaware County Chamber of Commerce, the Lancaster Chamber of Commerce, and the Chamber of Commerce for Greater Philadelphia—we share a deep commitment to advancing opportunity and prosperity in our communities. Our chambers collectively represent tens of thousands of businesses, nonprofits, and employees across the region, and we see firsthand the real impact Harrisburg’s decisions have on everyday Pennsylvanians.
Today, we are encouraged to see that Pennsylvania’s leaders have come together to deliver a long-awaited state budget. While the process has not been easy, the result demonstrates that compromise is possible, and that when our elected officials put people over politics, the Commonwealth moves forward. This budget agreement means schools can continue to educate, counties and municipalities can plan for the future, and the nonprofit organizations that care for our most vulnerable residents can resume their work with certainty. Businesses, already navigating a complex economy, can move ahead with renewed confidence, knowing that our state’s leaders have worked together to provide the clarity and stability our economy needs. The current federal government shutdown is now among the longest in US history. Negotiations have intensified, but for now, both the Administration and Congressional Republicans are emphasizing the need to pass a clean Continuing Resolution (CR) to reopen the government. However, Democratic leadership in the Senate remains firm that negotiations should address broader funding issues, namely an extension of COVID-19 pandemic-era Obamacare subsidies set to expire at the end of this year.
The White House has indicated a willingness to continue discussions on these and other topics while operating on at least a short-term Continuing Resolution to end the government shutdown. President Trump has also called upon Senate Republican Leadership to abolish the filibuster. While Republicans control 53 seats, a 60-vote threshold is needed to end a filibuster. In the meantime, agencies across the Federal Government are feeling the effects as more employees miss paychecks and government-wide operations slow. Federal Contractors are preparing for possible disruptions if the shutdown continues, and pressure is building from affected sectors to resume normal funding. Air traffic controllers and other essential personnel continue to report to work without pay, raising concerns about long-term staffing and safety. Federal unions representing these workers, particularly the American Federation of Government Employees (AFGE), have called for an end to the shutdown but have directed their appeals primarily toward Congress rather than the Administration. Industry leaders warn that extended delays could begin to impact travel schedules and freight operations. |
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