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Gas is nearly $4 again and diesel just topped $5. It’s not what you think
CNN • • business
Key Points:
- US gas prices have surged 15 cents in a week to $3.94 per gallon, with diesel topping $5 per gallon again, reflecting the ongoing impact of the conflict with Iran on fuel costs.
- Although oil prices have risen 16% since the war began, gas and diesel prices have increased more than 32%, due largely to refinery capacity constraints rather than just crude oil supply issues.
- Damage to refineries in the Middle East by Iran and in Russia by Ukrainian strikes has significantly reduced global refining capacity, contributing to fuel shortages and higher prices worldwide.
- US refineries are operating near full capacity and exporting large amounts of fuel overseas, leading to historically low domestic gasoline inventories amid rising summer demand.
- Extreme summer heat poses additional challenges for refineries, as high temperatures hinder their ability to efficiently process crude oil into gasoline and other fuels, potentially limiting supply further.
