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U.S. Gas Prices Climb Back Above $4 as Pump Costs Rise Across Several States

Persistent crude-flow disruptions, attacks on refineries and refinery strikes have tightened fuel supplies, leaving the timing of relief unclear.

Overview

  • Mid-August station-level surveys show the national average rose to about $4.02 per gallon after a weekly increase of roughly 7.7 cents, reversing a brief period of easing.
  • Twin Cities drivers saw average prices hit $4.00 with a 16.3-cent weekly jump, while Ohio, Minnesota and Michigan reported larger weekly and year-over-year gains that put many states about $1 higher than a year ago.
  • GasBuddy analysts point to the continued closure of the Strait of Hormuz, Ukrainian attacks on Russian refineries and U.S. refinery strikes as the main near-term drivers tightening supply of gasoline and diesel.
  • Industry forecasters say the seasonal switch to winter-blend gasoline next month could provide modest relief if crude and refinery pressures ease, but AAA warns ongoing global supply uncertainty could push prices higher again.
  • Regional price spreads remain wide at station level, which means drivers in higher-cost states face steeper burdens and policymakers and markets should watch refinery output and Strait of Hormuz developments for clues on future pump prices.