GasBuddy data from 5/5 reveals that average retail gasoline prices in the US have surpassed USD 4.5 per gallon (USD 1.2 per liter). This marks the first time since July 2022 that prices have exceeded this level. California currently leads the nation with the highest average gasoline price, recorded at USD 6.14 per gallon.
US gasoline prices surpassed USD 4 from late March, attributed to the Middle East conflict disrupting global energy supplies.
The blockade of the Strait of Hormuz has prevented 20% of crude oil and liquefied natural gas from reaching the market. Consequently, Brent crude oil prices have surged by nearly 60% since the conflict began in late February.
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Average retail gasoline prices in the US, 2000-2026 (USD/gallon). Chart: AAA, Reuters |
As the US approaches summer, its peak fuel consumption season, this situation poses a significant challenge for President Donald Trump and the Republican Party ahead of the November midterm elections. With the conflict showing no signs of de-escalation, analysts predict that US fuel prices could exceed previous records.
"`The closure of the Strait of Hormuz will continue to drive gasoline and oil prices up. However, we also see that refining issues are exacerbating the situation,` commented Patrick De Haan, an analyst at GasBuddy."
Last month, UK oil and gas company BP reported that its 400,000 barrel-per-day refinery in Indiana, US, experienced a sudden power outage, leading to the temporary shutdown of one facility.
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Americans filling up at a gas station in Beverly Hills, California, on 3/3. Photo: AP |
De Haan forecasts that if the Strait of Hormuz remains closed, US gasoline prices this summer will stay above USD 4.5 per gallon. Mid-last month, Trump also indicated that high gasoline prices could persist until the midterm elections.
Gasoline inventories in the world's largest economy are also declining more rapidly than usual. Data from the US Energy Information Administration (EIA) indicates that the nation's gasoline inventories last week dropped by over 6 million barrels to 222 million barrels. This marks a six-month low and is 2 million barrels below the five-year average. Concurrently, gasoline demand has risen by 1% compared to the same period last year, reaching 8.95 million barrels.
Ha Thu (Reuters)
