U.S. gasoline prices surged to record highs ahead of the Labor Day weekend, with diesel hitting an all-time peak of $5.85 per gallon on Friday, surpassing its previous mark of $5.81 set in June 2022. The national average for regular gasoline reached $4.14 per gallon on Thursday, climbing 4 cents from the prior week, according to data from AAA.<\/p>\n
The holiday weekend is expected to see the highest pump prices ever recorded for that period, AAA noted. Historically, gas prices have never exceeded $4 per gallon on Labor Day.<\/p>\n
“Even though gasoline demand decreases this time of year, typically bringing down gas prices, this year is different due to the high cost of crude oil,” AAA said in a report.<\/p>\n
The price spike comes amid ongoing conflict in the Strait of Hormuz, a critical waterway through which one-fifth of the world’s oil supply flows. Brent crude rose to $95.55 per barrel on Thursday, while the U.S. benchmark traded around $91.50.<\/p>\n
Higher fuel costs are already taking a toll on American households. Since the start of the Iran war, elevated gasoline and diesel prices have cost the average household more than $741, according to a tracker from Brown University.<\/p>\n
The surge in diesel costs is raising expenses for trucking, construction, agriculture and other industries reliant on heavy-duty vehicles and machinery. “The everyday consumer will see higher diesel prices in the consumer goods they purchase,” said Susan Bell, senior vice president of downstream research at Rystad Energy. “Think of the groceries that get shipped around the nation, and fruits and vegetables that come from California and move by truck or rail. It’s inflationary.”<\/p>\n
Oil accounts for roughly half the cost of a gallon of gas in the U.S., with the remainder coming from refining, taxes and marketing, according to the U.S. Energy Information Administration.<\/p>\n
President Trump met with U.S. oil refiners on Tuesday to discuss increasing refining capacity as the White House seeks to contain sky-high oil prices. Last week, he also struck a deal with Venezuela to gain control of about 65 billion barrels of its proven oil reserves. However, energy experts caution that it could take years for those fields to yield enough crude to move the needle on U.S. fuel prices.<\/p>\n
Analysts say prices are likely to remain elevated until shipping resumes in the Strait of Hormuz. “Typically, prices decline in the fall, but right now, it has more to do with geopolitical tensions that could change at a moment’s notice,” said De Haan.<\/p>\nhttps:\/\/prod.vodvideo.cbsnews.com\/cbsnews\/vr\/hls\/4793396_hls\/master.m3u8<\/a>\n","protected":false},"excerpt":{"rendered":" Diesel fuel hits a record $5.85 per gallon as U.S. gasoline averages $4.14, driven by elevated crude costs from the Iran conflict.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1047,650,102,15,1048,874,26],"class_list":["post-424","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-diesel","tag-gas-prices","tag-inflation","tag-iran","tag-labor-day","tag-oil-prices","tag-us"],"_links":{"self":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/posts\/424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/comments?post=424"}],"version-history":[{"count":1,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/posts\/424\/revisions"}],"predecessor-version":[{"id":425,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/posts\/424\/revisions\/425"}],"wp:attachment":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/media?parent=424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/categories?post=424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/tags?post=424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}