US Gasoline Prices Head to $4 Again in Heart of Road Trip Season

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUS Gasoline Prices Head to $4 Again in Heart of Road Trip SeasonIt’s the middle of summer driving season, when Americans typically embark on road trips and burn through millions of barrels of gasoline each day. They’ll be paying more for every fill up.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.ilev])ci}()wvshq[)ab73gf_media_dl_1.png American Automobile Association(Bloomberg) — It’s the middle of summer driving season, when Americans typically embark on road trips and burn through millions of barrels of gasoline each day. They’ll be paying more for every fill up.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 AccountUS retail gasoline prices are once again nearing the $4-a-gallon mark, with renewed conflict between the US and Iran exacerbating an already tight fuel market. Average pump prices stood at $3.98 a gallon as of Thursday, according to data from the American Automobile Association — up nearly 20 cents in just 10 days. Gasoline prices have been a consistent pain point for US consumers in the months since the Iran war broke out and disrupted global energy shipments. Supplies have remained tight, and a stark loss of fuel-making capacity in Russia due to recent Ukrainian drone attacks has worsened the situation. US oil refineries, meanwhile, are also placing an outsized focus on producing jet fuel and diesel rather than gasoline.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 again“July is typically one of the busiest driving months of the year, so rising gas prices can feel like the rug is being pulled out from under consumers just as they’re hitting the road,” said Thomas Weinandy, principal research economist at Upside, an app that provides cash back on gas purchases. “It’s a one-two punch: higher prices at the pump and the back-and-forth in pricing that makes it harder to budget. Many are asking themselves, do I fill up today or hold out until tomorrow?”Even during the weeks when the now-shattered ceasefire between the US and Iran pressured crude oil futures lower, gasoline remained stubbornly high. Pump prices, which fell below $4 in June, only briefly dipped below the $3.80 mark in early July before beginning to rebound. In a number of states, including Michigan, Maine and Pennsylvania, prices have already returned above the $4 mark after dropping back into the $3 range.The march back to $4 gasoline is ramping up concerns that US inflation, which slowed last month on declining fuel prices, might flare again. It also adds to the political challenge for President Donald Trump’s Republican Party ahead of the fall’s midterm elections. Democrats have seized on affordability — particularly high gas prices — as a key issue in the party’s effort to win back both the House and Senate.The strain on consumers isn’t yet as bad as it was in May, when prices averaged more than $4.50 a gallon. “People complain, but if they have plans, they don’t usually change much in the summer,” said Patrick De Haan, head of petroleum analysis at GasBuddy. It’s unusual for prices to fall below $4 and then return above the mark in the same summer, he said, but only a month has passed since consumers saw the $4-a-gallon prices.“It hasn’t been very long since we hit it,” De Haan said. “So it’s not exactly like twisting the knife again.”Still, there may yet be room for prices to run even higher. As the US-Iran conflict drags on, it’s possible that crude prices will make further gains. That would, in turn, send gasoline on a next leg up as well. Meanwhile, margins for making gasoline from crude oil are at record highs, indicating that the market is calling out for more of the fuel. US refiners are already running at maximum capacity in an effort to supply fuels both for domestic consumption and exports. The situation runs the risk of sparking unplanned outages, which in turn could trigger outsized gasoline price shocks amid unusually low stockpiles.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.