2 hrs ago
US Fuel Prices Hit Labour Day Record Amid Iran War
Gasoline costs more in the United States this Labour Day than ever before.
The average price is USD 4.14 per gallon.
Diesel is even more expensive, reaching USD 5.85 per gallon.
Higher diesel prices can make deliveries and groceries cost more.
The conflict involving Iran and reduced shipping through the Strait of Hormuz have affected fuel supplies.
Refineries in the United States and other countries are also producing less fuel or facing risks from extreme weather.
The Energy Secretary says prices may fall in the coming months.
Experts say prices are difficult to predict, so drivers are using price apps to find cheaper stations.
The average US regular-gas price reached USD 4.14 per gallon before Labour Day.
That price was nearly USD 1 higher than last year and exceeded the previous Labour Day record of USD 3.82 in 2012.
Diesel reached a record national average of USD 5.85 per gallon, raising freight and delivery costs.
The Iran conflict, reduced Strait of Hormuz traffic, and refinery supply problems have pushed prices higher.
Officials expect prices to fall, but experts warn heat, hurricanes, and global refinery disruptions could prolong high costs.
- Who
- US drivers, energy officials, fuel-market experts, and consumers are affected.
- What
- US regular-gas prices reached a Labour Day record, while diesel prices reached an all-time national average record.
- Where
- Across the United States, with an example price of USD 4.199 per gallon in Claymont, Delaware.
- When
- Ahead of the Labour Day weekend; diesel reached its record on the Friday before the holiday.
- Why
- Prices rose after US and Israeli attacks on Iran, reduced traffic through the Strait of Hormuz, and refinery supply disruptions.
Expected Relief
Continued Uncertainty
Future gasoline prices
Expected Relief
Energy Secretary Chris Wright said the administration is working to lower prices and that futures markets point to meaningfully cheaper gasoline in coming months.
Continued Uncertainty
Energy experts said prices remain unpredictable because of the Iran conflict, refinery constraints, extreme Texas heat, and possible hurricane disruptions.
Main supply pressures
Expected Relief
The administration said increasing production could help reduce fuel costs.
Continued Uncertainty
Experts pointed to reduced Strait of Hormuz traffic, Ukrainian attacks on Russian refineries, and declining Chinese refinery output as continuing supply pressures.
Key facts
- Regular gasoline average
- USD 4.14 per gallon before Labour Day
- Diesel average
- USD 5.85 per gallon, a record
- Previous Labour Day gas record
- USD 3.82 per gallon in 2012
- All-time gasoline record
- USD 5.02 per gallon in June 2022
- US refinery utilization
- 98 per cent
- Example local price
- USD 4.199 per gallon in Claymont, Delaware
- Potential November price difference
- Futures prices were about USD 0.35 per gallon lower than current prices
Quotes
Nicole Collins
Philadelphia-area driver discussing the effect of fuel prices on her family’s travel
“Gas is pretty high right now. It doesn't help that we also have a baby, so we also have to pay for that.”
livemint.com
“Yes, they're higher today, but we're doing everything we can to push them down.”
livemint.com
Sources
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