Gasoline prices enter the summer driving season at record levels, with the national average hitting $4.45 on May 2 – the highest ever for that date.
That’s about $1.28 more than a year ago, according to AAA, with prices rising in almost every region.
OIL AND GAS PRICES JUMP AS TRUMP FLIRTS WITH STRIKING Iranian OIL INFRASTRUCTURE
This milestone underlines the continued volatility in fuel markets, driven in part by the escalating conflict involving Iran, which has disrupted global oil supplies and sent crude oil prices soaring.
It also suggests that the usual seasonal run-up starts from a much higher base level. For consumers, this is likely to mean higher transport costs and continued pressure on the transport sector household budgets.
SAN FRANCISCO BECOMES FIRST U.S. CITY TO HAVE DIESEL PRICES ABOVE $8 PER GALLON
People refuel vehicles at a gas station in Los Angeles, on November 15, 2021. (Zeng Hui/Xinhua via Getty Images)
Drivers on the West Coast see the highest costs, with prices reaching $6.10 per gallon in California and $5.67 in Washington. Meanwhile, on the East Coast, gas prices have surpassed $4 in several areas, including $4.48 in Washington, DCand $4.52 in Pennsylvania.
Meanwhile, in the MidwestIllinois stands out at $4.93 per gallon, while much of the region remains in the mid-$4 range. While the southern states remain relatively cheaper, prices there are also rising, with Georgia at $3.85, Texas at $3.92 and Florida higher at $4.34.
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A person is seen grabbing the diesel nozzle at a gas station. (Rebecca Noble/Bloomberg/Getty Images)
In addition to gasoline, other fuel costs are rising even faster. Diesel rose to $5.64, up from about $2.09 in the past year. As a key fuel for freight, shipping and public transport, it is particularly sensitive to supply disruptions – and its rising costs can quickly ripple through the wider economy, pushing up the prices of everything from groceries to goods.
The increase underlines the broader economic risks associated with the standoff, as uncertainty around the Strait of Hormuz continues to weigh on energy markets.
