Gas Prices Spike in Nebraska as US Enters War with Iran

Prices jump over 25 cents in a single day, raising concerns for Nebraska's working class

Published on Mar. 4, 2026

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Gas prices in Nebraska have spiked sharply in the wake of the U.S. and Israel's military conflict with Iran, with the state's average price per gallon jumping from $2.62 a week ago to $2.87 on Tuesday. Stations in Lincoln are now selling regular gas for around $2.99 per gallon, and the national average has reached over $3 per gallon for the first time this year. Local gas station owners say the sudden price hike is a "pretty substantial jump" that will likely continue to rise as the conflict continues.

Why it matters

The sudden rise in gas prices will have a significant impact on Nebraska's working class and lower-income residents, who will face increased costs not just at the pump but also in other areas like home heating, grocery prices, and supply chain costs. This comes at a time when many Nebraskans are still recovering from the economic impacts of the pandemic.

The details

Gas station owner Jeff Melichar said his wholesale costs have gone up by about 25 cents since the last price release on Tuesday, leading him to raise prices at the pump. Melichar expects prices to continue rising in the coming weeks as the conflict with Iran continues, though he hopes it won't reach "a really ridiculous price." The head of petroleum at GasBuddy.com predicts regular gas could rise 10-30 cents per gallon, with diesel potentially doubling that increase.

  • On Tuesday, the average price per gallon jumped to just over $3 nationally, the first time it's reached that benchmark this year.
  • In Lincoln, many stations are sitting at $2.99 for regular gas, with Nebraska's average reaching about $2.87, according to AAA.
  • On Monday, the state's average was $2.72, and a week ago it sat at $2.62, again according to AAA.

The players

Jeff Melichar

Runs a Phillips 66 station and car repair shop in Lincoln, Nebraska.

Patrick De Haan

Head of petroleum analysis at GasBuddy.com.

Nebraska For Us

A state advocacy group calling on Nebraska's Congressional delegation to take action to bring gas prices down.

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What they’re saying

“That's a pretty substantial jump. You see that and you go 'ooh, that's gonna hurt.' Especially in a single day.”

— Jeff Melichar, Gas station owner (1011now.com)

“You and I and everybody else has still got to get to work, they still got to pick up kids, go to the grocery store and everything else. They might be a little more mindful ... at the end of the day it'll probably shake out to be about the same.”

— Jeff Melichar, Gas station owner (1011now.com)

“Recent global events have caused impacts halfway across the world for working class Nebraskans who are just trying to get by. On Monday, gas prices saw their largest one-day increase in the last four years, and analysts expect it to continue to rise in the coming days and weeks.”

— Nebraska For Us (1011now.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This sudden spike in gas prices will have a disproportionate impact on Nebraska's working class and lower-income residents, who will face increased costs not just at the pump but across the board. It highlights the need for policymakers to take swift action to mitigate the effects of global conflicts on everyday Nebraskans.