American drivers are facing a painful new surge at the pump, with the national average for regular gasoline reaching $4.37 per gallon on Wednesday, according to AAA. Diesel set a fresh record above $6.31 per gallon on the same day, as tightening global oil supplies and escalating conflicts involving Iran and Ukraine drive fuel costs higher.
Prices are rising more than a dollar per gallon above where they stood a year ago, when the national average for regular gasoline was near $3.19. The spike is especially striking for September, a month when fuel costs typically fall as summer travel demand fades and refiners switch to cheaper winter-grade blends.
Tom Kloza Warns of “Staggering Increases” in Key Regions
Tom Kloza, chief energy adviser at Gulf Oil, sounded the alarm Tuesday, saying drivers should brace for pain. “Watch for huge increases in Great Lakes and Rocky Mountain states in particular,” he said, adding that fuel margins have “yet to catch up with previous wholesale hikes.” He warned that the next 24 hours could bring “staggering increases at the pump for both gasoline and diesel.”
GasBuddy petroleum analyst Patrick De Haan issued a parallel warning, noting that the country had crossed a significant threshold. “We’ve reached a new milestone, the U.S. average diesel price has hit $6.301 per gallon while gasoline is up to $4.355 per gallon,” he said. “I expect both of these to jump noticeably over the next 48 hours. Diesel could hit $6.60 per gallon in a few days, surpassing the inflation-adjusted peak seen in 2022.” Readers can follow gas and diesel price records for the latest figures as conditions shift.
Middle East Conflict and Saudi Pipeline Damage Squeeze Global Supply
The driving force behind the spike is disruption to global oil markets. Fighting involving Iran has sharply curtailed shipping through the Strait of Hormuz, a chokepoint that normally carries roughly one-fifth of the world’s oil supply. A drone attack has also damaged Saudi Arabia’s East-West pipeline, a key route that allows crude exports to bypass the strait and reach Red Sea ports. Brent crude was trading near $107 per barrel Wednesday, up from levels closer to $70 before the Iran conflict began.
De Haan previously told Newsweek that the usual autumn relief may not arrive this year. “We usually see some limited seasonal drops as U.S. gasoline demand fades into the autumn and we change to winter gasoline, but that relief is in question and can be offset by new or continued escalations” in the wars in Ukraine and Iran, he said.
California at $6 a Gallon, With More States Feeling the Pressure
California drivers are absorbing the sharpest pain, with regular gasoline averaging about $6.04 per gallon. Washington, Hawaii, Nevada, Oregon and Alaska were also averaging above $5 per gallon. Only a handful of states, including Texas, Indiana, Tennessee and a few others across the South and Midwest, remained below the $4 mark.
Diesel’s rapid climb carries consequences well beyond the gas station. The fuel is critical to trucking, agriculture and freight, meaning sustained price increases can push up the cost of food, merchandise and other goods across the broader economy. With no resolution in sight in the Middle East and analysts pointing to more increases in the coming days, drivers and businesses alike should expect continued pressure at the pump.
