-- US retail gasoline and diesel are priced at record seasonal highs, intensifying cost pressures ahead of peak summer travel, according to a Bloomberg analysis on Tuesday.
US consumers are facing unusually high fuel costs for this time of year, as gasoline and diesel prices climb to new seasonal peaks ahead of the busy summer travel period, the analysis said.
Retail fuel prices have eased slightly in recent days amid hopes of a US-Iran deal, but remain elevated for the season, with gasoline averaging $4.12 per gallon Monday, the analysis said, citing the American Automobile Association.
The price marks a new high for this date, exceeding the prior record of $4.07/gal set in 2022, when fuel costs surged amid supply disruptions following Russia's invasion of Ukraine, the analysis said.
National average diesel prices reached $5.65/gal, exceeding the previous seasonal peak in 2022 by over $0.60, the analysis said.
The surge is tied to disruptions in the Strait of Hormuz, where conflict involving Iran has constrained flows through a key route handling nearly a quarter of global seaborne oil.
Higher crude prices have contributed to broader inflation pressures, with rising fuel costs feeding into transportation, food prices and even airline fares, amplifying economic strain, the analysis added.
Gasoline prices have climbed more than $1.10/gal since late February, when US and Israeli strikes on Iran escalated tensions and tightened global energy markets.
US Energy Secretary Chris Wright said Tuesday that gasoline prices could remain elevated for several more weeks, highlighting continued uncertainty around supply conditions, according to the analysis.
The US Energy Information Administration expects gasoline to average $4.16/gal in Q2 before easing to $3.55/gal by Q4 if tensions subside, the analysis said.