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FORT MCMURRAY — Brent crude is nearing US$100 a barrel while West Texas Intermediate continues its upward trajectory toward US$95, adding pressure to fuel prices as American motorists face record costs at the pump.
GasBuddy says the U.S. national average price of gasoline stands at US$4.09 per gallon, up nearly 11 cents from a month ago and almost 91 cents from a year ago.
Diesel has climbed even more sharply, rising nearly 30 cents in the past week to US$5.87 per gallon.
GasBuddy head of petroleum analysis Patrick De Haan said gasoline prices increased in nearly three out of five states over the past week, while diesel increased in every state.
“The milestone many hoped to avoid has arrived: the national average price of gasoline on Labor Day set a new record for the holiday, eclipsing the previous mark of $3.83 per gallon set in 2012,” De Haan said.
Diesel also set an all-time U.S. record, reaching US$5.87 per gallon on Sept. 3 and surpassing the previous record of US$5.82 set in 2022.
De Haan said US$6-per-gallon diesel is now a realistic possibility in the coming weeks if continued Ukrainian attacks on Russian refining infrastructure knock additional capacity offline.
The rising fuel prices come as crude oil continues to climb amid escalating tensions between the United States and Iran around the Strait of Hormuz.
GasBuddy says the conflict has pushed crude prices nearly 10 per cent higher over the past week, while shipping traffic through the Strait of Hormuz has fallen sharply.
U.S. forces struck three Iranian oil tankers over the weekend, while Iran has threatened to announce a maritime exclusion zone outside the strait and stop vessels transiting without Iranian permission. Saudi energy facilities have also been hit.
GasBuddy says U.S. fuel inventories are adding to the pressure.
Citing the U.S. Energy Information Administration, GasBuddy says gasoline inventories are about six per cent below their five-year seasonal average, while distillate inventories are about 14 per cent below average.
De Haan said diesel prices face continued upward pressure until the global refining supply picture improves, while gasoline could begin to see some seasonal relief in the coming weeks.
In Fort McMurray, regular gasoline is selling for between 149.9 and 159.9 cents per litre Monday.
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