“We’re paying more than we’ve ever paid this time of year,” said Tom Kloza, chief oil analyst at Gulf Oil. “For August, this is pretty high.”
Oil prices tend to rise in the summer as the country faces its peak driving season and slump in the autumn as seasonal demand goes down and heat-related restrictions on blending volumes lift.
The average U.S. gasoline price as of Wednesday was about $4.04, according to AAA, about 90 cents higher than the average price a year ago.
Prices of gasoline have spiked alongside oil prices during the Iran war, especially as the conflict has diminished traffic in the Strait of Hormuz, a key shipping chokepoint.
The last time gasoline prices faced a significant spike was in 2022 amid Russia’s war with Ukraine. That year, the average gasoline price peaked at just above $5 per gallon.
However, by August, prices had started to come down. According to the Energy Information Association, the average price for the month of August 2022 was $4.09 per gallon.
Historic AAA data shows that by Aug. 12 of that year, the average U.S. price slid to $3.99 per gallon.
Around the midterms, where fuel prices and affordability in general are expected to be a major voting issue, Kloza said, “I don’t think we’re going to have apocalyptic prices in the next 90 days or so, but I do think they’re going to be as high as they’ve ever been for this time of year.”
He said that barring an impactful hurricane, this could mean an average of about $3.50 to $3.75 per gallon.
Read more at TheHill.com.
