AI Generated Image
Fuel prices at record Labor Day high in US thanks to Iran war and refinery issues
KSL.com • • general
Key Points:
- The average price of regular gasoline in the U.S. reached $4.14 per gallon over the Labor Day weekend, nearly $1 higher than last year and surpassing the previous record of $3.82 set in 2012, according to AAA.
- Gas prices surged after U.S. and Israeli attacks on Iran in February, with the closure of the Strait of Hormuz reducing crude oil traffic, contributing to sustained high fuel costs.
- Diesel prices hit a record $5.85 per gallon, impacting transportation and consumer goods costs, as trucks and freight systems pass on increased fuel expenses.
- U.S. refineries are operating near full capacity amid harsh weather, and global factors like Ukrainian drone attacks on Russian refineries and reduced Chinese output add to fuel supply uncertainties.
- Energy Secretary Chris Wright indicated efforts to lower prices are underway, with futures markets predicting a price drop by November, though geopolitical tensions continue to keep prices elevated.
