PNN – Gasoline prices in the U.S. have hit record highs over the Labor Day weekend, while the escalating conflict in the Middle East has pushed crude oil prices back above $90 per barrel.
According to the report of Pakistan News Network citing Reuters; Americans are facing record-high gasoline prices during the Labor Day weekend as energy costs continue to rise due to the conflict in the Middle East; this comes as campaigns for the congressional midterm elections are also getting underway.
Patrick DeHaan, an analyst at GasBuddy, stated that the average gasoline price across the U.S. is likely to reach $4.03 per gallon on Labor Day—a figure significantly higher than the previous record of $3.83 per gallon set in 2012.
DeHaan noted that while gasoline prices have not yet reached an all-time high, they have never been this high at this time of year; the U.S. could see the average price cross the $4-per-gallon mark by Labor Day for the first time.
On Thursday, the average U.S. gasoline price stood at approximately $4.13 per gallon—nearly a dollar higher than the average during the same period last year. According to GasBuddy data, analysts consider the $4 level to be a painful threshold for many consumers.
Gasoline prices—one of the most tangible economic indicators for American consumers—can rapidly shape public perception of the overall state of the economy. With prices remaining above $4 for much of the year, this issue has become a persistent concern for U.S. President Donald Trump and the Republican Party.
Trump has pledged to lower energy costs. In recent weeks, he has stepped up his criticism of refineries and fuel retailers, accusing them of profiting from high gasoline prices.
On August 14, Trump claimed that Americans should be willing to pay “a very small amount more” for gasoline to ensure Iran does not obtain nuclear weapons.
Labor Day typically marks the final summer holiday opportunity for many Americans, with large numbers of people traveling by car or plane during the break.
Fuel prices have risen in tandem with the cost of crude oil. Oil prices climbed back above $90 per barrel this week following the resumption of military hostilities between the U.S. and Iran and growing concerns regarding disruptions to crude oil supplies.
The prices of petroleum products, including diesel and heating fuel, have also risen. Persistent attacks on Russian oil refining facilities have further fueled concerns regarding potential supply disruptions for these fuels.
Tom Kloza, chief energy analyst at Gulf Oil, stated that there is a greater than 50% chance that retail diesel prices will surpass the all-time high of approximately $5.82 per gallon set in June 2022.
He added: This creates a worrying outlook.