Americans are set to face a significant spike in gas prices on Wednesday and Thursday as the conflicts in Ukraine and Iran continue to squeeze global oil supplies, according to analysts. Tom Kloza, chief energy advisor at Gulf Oil, warned on Tuesday that the following 24 hours would bring "staggering increases at the pump for both gasoline and diesel." Fuel margins—the difference between what a petrol station or retailer pays for wholesale fuel and what they charge drivers at the pump—have "yet to catch up with previous wholesale hikes," Kloza wrote on X. "Watch for huge increases in Great Lakes and Rocky Mountain states in particular," he added.
Patrick De Haan, head of petroleum analysis at GasBuddy, issued a similar warning on Tuesday, writing on social media: "we've reached a new milestone—the U.S. average diesel price has hit $6.301/gal while gasoline is up to $4.355/gal. "I expect both of these to jump noticeably over the next 48 hours. diesel could hit $6.60/gal in a few days, surpassing the inflation-adjusted peak seen in 2022." The latest data from the American Automobile Association (AAA) shows that the national average price for gasoline was $4.37 per gallon on Wednesday, up from $4.33 per gallon on Tuesday and $4.22 per gallon a week earlier. Compared to a year earlier, the national average was up by more than a dollar, from $3.19 per gallon.
Drivers in California paid the highest price in the country, at $6.04 per gallon. In five other states—Washington, Hawaii, Nevada, Oregon and Alaska—the average was above $5 per gallon. This is a developing story.
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