Americans Have Never Paid This Much for Fuel So Late in The Year

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Or sign-in if you have an account.42tv}zb2ycf8pbq)yoh)[kv9_media_dl_1.png US Energy Information Administra(Bloomberg) — It’s peak driving season in the US, and gasoline and diesel prices have never been this expensive this late in the year.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountGas and diesel prices are at a record seasonal high, according to data from the American Automobile Association. Drivers are paying an average of $4 a gallon for gas and $5.40 a gallon for diesel in the second week of August for the first time ever. That comes as millions of Americans typically take to the road for vacations and family visits.At this time last year, gasoline cost $3.20 a gallon and diesel was $3.70 a gallon.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThere’s little relief on the horizon as both the US war on Iran and the Russia-Ukraine conflict stretch on, crimping global supplies of crude oil and fuel from those major producing regions. The US Department of Energy forecasts that gasoline will cost an average of $4 a gallon this quarter and then will drop to $3.72 in the fourth quarter, a figure well-above seasonal norms. For diesel, the lifeblood of trucking and the industrial economy, the price per gallon will fall just shy of $5 by the end of the year. Those forecasts mark a major revision upwards from a month ago.Meanwhile, gasoline inventories in the US are at the lowest level since November 2025, according to government data released Wednesday. In regions like New York and New Jersey, they’re at the lowest level since November 2024.American drivers travel some three trillion miles annually in cars and trucks, according to Federal Reserve Bank of St. Louis data. Soaring fuel costs are likely to be a key issue for both drives and politicians in the back half of the year. Gasoline demand wanes after the peak summer months of travel, and fuel makers — who have been raking in massive profits to meet global demand — are set to maximize diesel production to replace lost supply. That may mean a ceiling is kept on gasoline inventories as refineries make less of that road fuel, leading to sustained higher prices. Those factors come as Americans head to polls in November for mid-term elections while watching one of the most visible costs of living pressures emblazoned above gas station forecourts.To be sure, fuel prices are below the war-time peaks reached earlier in the year that also fell short of historic price spikes in the aftermath of Russia’s invasion of Ukraine. US inflation data released Wednesday for the month of July was also subdued, showing energy and gasoline prices falling for the second consecutive month as more oil made it out of the Persian Gulf during a collapsed US-Iran ceasefire. 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