Lead

US drivers are facing the highest gasoline prices in nearly three years, with the national average climbing to around $4.55 per gallon as of May 7, according to data from the American Automobile Association (AAA) reported by TASS. This marks a continued rise for a fortnight, reaching levels not seen since late July 2022.

Coverage Comparison

Multiple reports from TASS, citing AAA data and other sources, trace the price surge from late April through early May. An April 28 report noted a single-day increase of about 6 cents, bringing the average to $4.18 per gallon – the highest since August 2022. By May 5, the average had risen to $4.483, and it reached $4.536 on May 6, according to AAA. A May 7 report put the nationwide average at $4.55 per gallon, with only one state – Oklahoma – averaging below $4.

All reports highlight California as the most expensive state, with prices exceeding $6 per gallon. The figures vary slightly across reports, with one citing $6.13, another $6.16, and an earlier report noting $5.96. These differences appear to reflect the timing of data collection.

Key Claims

  • The national average price for a gallon of regular gasoline reached $4.536 on May 6, according to AAA data cited by TASS, rising from $4.483 the previous day.
  • California has the highest average price, with drivers paying approximately $6.16 per gallon as of May 7.
  • Oklahoma is the only state where the average price remains below $4, at $3.98 per gallon.
  • The price increase is attributed to tensions surrounding Iran and disrupted oil supplies through the Strait of Hormuz, according to multiple reports.
  • Additional pressure comes from problems at US-based refineries and the approaching summer driving season, as reported by TASS.
  • The historical record for average gasoline prices in the US was set in June 2022, when the cost exceeded $5 per gallon.

Perspectives

Causation: Iran and supply disruptions

The dominant explanation across reports is the situation in Iran and its impact on oil supplies. According to TASS, the price hike is linked to tensions around Iran and disrupted oil supplies through the Strait of Hormuz. An earlier report noted that gasoline prices had been declining for two weeks following a ceasefire announcement in early April, but began rising again as negotiations stalled.

Market factors: Refineries and summer demand

Reports also point to domestic factors, including problems at US refineries and the approach of the summer driving season, as contributing to the price increase. These factors add pressure on top of geopolitical tensions.

Price outlook

An April 28 report cited a forecast by Lipow Oil Associates, a US consulting firm, predicting the average nationwide price could rise to $4.30 per gallon within a week to 10 days. That forecast has since been surpassed, as prices have climbed even higher. It is unclear whether the forecast has been updated.

Historical context

The current prices are notable but remain below the all-time high of over $5 per gallon recorded in June 2022, as reported by TASS. That record was set during a period of global energy price spikes.

This article is based on reports from TASS, which cite data from the American Automobile Association (AAA), GasBuddy, and other sources. All figures are as reported by TASS and have not been independently verified by Tertius News.