Gas prices rise $1.50 since war with Iran began

The national average for a gallon of gasoline has been rising since the start of the war with Iran. In Killeen, Texas, the price is up $1.28, which adds about $90 a month for Charles Rice to fill his truck.

"$3.96 instead of $4.12 or $4.20 or what have you, so that's what brought me in here today," Rice said while filling up at Casey's General Stores. The chain is the nation's third-largest convenience store operator, with nearly 300 locations across 19 states. Two-thirds of its stores are in towns of 20,000 people or less.

Store visits at Casey's are expected to jump 20 percent over Memorial Day weekend, the start of the chain's 100 days of summer, said CEO Darren Rebelez.

"The consumers have been hanging in there, and we tend to price our fuel at the lower end," Rebelez said.

Before the Middle East conflict erupted in February, the national average for a gallon of gas hovered just below $3. Around the country, a gallon now costs an average of $4.50, up more than $1.50 since the war started, according to AAA. In a May 12 forecast, the U.S. Energy Information Administration estimated that retail gas prices will average $3.88 per gallon for the rest of the year and $3.62 per gallon in 2027.

Consumers are making trade-offs elsewhere because of higher gas prices. Sales of Casey's self-branded snacks, which sell for about a dollar less than national brands, are up.

"People normally want things that are going to be a little bit more affordable," said customer Tiffany Bishop. "Especially when you have kids that want to pick up snacks."

Rebelez said many shoppers turn to Casey's when budgets are tight.

"When we get into times like this, where you know, budgets are stretched a little bit, we're viewed as a better value option," Rebelez said.