Overland Park expects to exhaust its annual fuel budget as gas prices across the Kansas City metro climb past $4 a gallon, city officials confirmed this week.

City leaders said the city maintains reserve funds for situations like the current spike, according to KCTV5. The officials did not specify a dollar figure for the fuel budget or say which departments are most affected.

Regular unleaded averaged $4.17 per gallon in both Kansas and Missouri as of Wednesday, Sept. 23, KCTV5 reported. In Kansas City, Kansas, prices reached $4.25. A year ago, the metro average was $2.92, according to the Kansas City Star. That is a $1.31-per-gallon jump.

The ongoing war with Iran is the primary driver. AAA spokesperson Nick Chabarria told the Star in a Sept. 18 report that the seasonal switch from summer-blend to winter-blend gasoline, which normally brings lower prices each fall, is unlikely to provide relief this year because of the Middle East conflict.

Economist Chris Kuehl of Armada Corporate Intelligence told KMBC in a Sept. 17 interview that without a resolution, prices could approach $5 per gallon. "There's not a lot that's going to drive it down at this point," Kuehl said.

Diesel is climbing even faster. Kansas diesel hit a record $6.23 per gallon on Monday, Sept. 21, nearly $2.70 above last year's level, according to AAA data reported by KSHB. Oil prices have dipped from above $100 per barrel, which could slow the pace of increases, Chabarria told KSHB.

The fuel crunch lands days after the Overland Park City Council unanimously approved a $515.9 million budget for 2027 on Sept. 14. That budget represents a 3.5% increase over 2026.

It already includes what the city called a "planned, strategic spend-down of reserve funds," according to the city's budget announcement.

Nearly 80% of the city's General Fund operating budget covers staff, including police officers, firefighters and infrastructure crews. The city has not said whether the fuel cost overrun will require adjustments elsewhere.

Residents can find budget documents and updates at opkansas.gov.