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WASHINGTON — The U.S. is continuing to experience rising fuel prices as the war in Iran drags on and maintenance in Canada’s oilpatch reduces supply.
GasBuddy says the national average price of gasoline rose 17.2 cents over the past week to $4.25 US per gallon.
That is 19 cents higher than a month ago and $1.14 higher than a year earlier.
The national average price of diesel climbed even more sharply, rising 31.6 cents over the week to $6.183 US per gallon.
Patrick De Haan, head of petroleum analysis at GasBuddy, says gasoline and diesel prices increased in every state over the past week as geopolitical tensions worsened on several fronts.
“Average gasoline and diesel prices rose in every state over the last week as geopolitical tensions escalated on multiple fronts, with friction between the U.S. and Iran, new hostilities in the Red Sea, and the shutdown of Saudi Arabia’s East-West pipeline all combining to jolt prices sharply higher,” De Haan said.
He says attacks that knocked two additional Russian refineries offline are adding further pressure to global refined product supplies.
De Haan says the seasonal transition to cheaper winter-blend gasoline is unlikely to provide much relief while geopolitical disruptions continue.
Oil prices also pushed back above $100 US per barrel to start the week.
GasBuddy says West Texas Intermediate crude was trading at $103.23 US per barrel early Monday, up from $93.65 a week earlier, while Brent crude reached $108.29 US, compared with $98.52 the previous week.
The increase follows the postponement of planned talks involving Gulf states and Iran over shipping through the Strait of Hormuz, along with the continued shutdown of Saudi Arabia’s East-West crude pipeline after drone strikes.
GasBuddy says the pipeline can move about seven million barrels per day and serves as an important route around the Strait of Hormuz.
The latest U.S. Energy Information Administration data also show tighter fuel supplies in some categories.
Commercial crude inventories fell by 400,000 barrels for the week ending Sept. 4, while the Strategic Petroleum Reserve declined by 1.2 million barrels to 285.4 million barrels.
Gasoline inventories increased by 1.3 million barrels but remained about five per cent below the five-year seasonal average.
Distillate inventories rose by 2.1 million barrels but were still about 13 per cent below the five-year average.
GasBuddy says the most common gasoline price in the U.S. is $3.99 US per gallon, while the median price is $4.11.
California has the highest average gasoline price at $5.95 US per gallon, followed by Washington at $5.50 and Hawaii at $5.33.
Indiana has the lowest average at $3.58 US per gallon, followed by Texas at $3.84 and Oklahoma at $3.85.
Diesel prices are even higher, with California averaging $8.11 US per gallon, Washington $7.15 and Hawaii $6.84.
GasBuddy says motorists should expect continued volatility with no meaningful price relief likely in the near term.
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