Prices at U.S. gas stations are sticking around $4 per gallon, a considerable amount for late summer, influenced by the uncertain trajectory of the Iran war. Tom Kloza, chief oil analyst at Gulf Oil, highlights this increase as unusually high for August.
During summer, oil prices typically climb due to peak driving season. They usually fall in autumn when demand decreases and heat-related blending restrictions ease.
As of Wednesday, AAA reports the average U.S. gasoline price at approximately $4.04. This marks a 90-cent increase over the previous year. The Iran war contributes to this spike, particularly affecting the Strait of Hormuz, a vital shipping chokepoint.
In 2022, the last significant gasoline price hike occurred during Russia’s conflict with Ukraine. Prices peaked above $5 in the summer, settling at $4.09 by August. Historic data from AAA shows that by mid-August of that year, prices dropped to $3.99 per gallon.
Heading into midterm elections, fuel prices are predicted to be a key voting issue. Kloza anticipates that barring a major hurricane, prices could average between $3.50 to $3.75 per gallon. He reassures that while prices will remain high for the season, they are not expected to reach catastrophic levels.
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Welcome to The Hill’s Energy & Environment newsletter, featuring updates on oil and gas policies and supply chains, curated by Rachel Frazin.
Essential Reads
Policy impacts on the energy and environment sectors:
- Former U.S. diplomat Richard Haass disputes President Trump’s claim of U.S. control over the Strait of Hormuz, a key strategic conduit.
- Slight inflation decrease noted in July, amid renewed U.S.-Iran strikes.
Other News
Relevant stories covering energy issues and environmental topics:
- The Guardian reports Supreme Court Justice Samuel Alito gained up to $2.9 million from oil and gas assets.
- California may experience record-high sea levels this year due to El Niño, according to KQED.
Trending Articles
- President Trump’s approval ratings continue to decrease amid the ongoing Iran war and growing economic concerns before the November elections.
- MyPillow founder Mike Lindell challenges election results in Minnesota’s Republican gubernatorial primary, citing alleged voting irregularities.