US Gasoline and Diesel Retail Prices Hit All-Time Highs; Energy Secretary Says Levels May Persist for Weeks
US gasoline and diesel retail prices have reached all-time highs, with the average gasoline price at $4.12 per gallon and diesel at $5.65 per gallon. Since late February, gasoline prices have risen by over $1.10 per gallon. Energy Secretary Chris Wright stated that gasoline prices may remain elevated for several weeks. The average gasoline price is projected to reach $4.16 in the second quarter before falling to $3.55 by the fourth quarter. The rise in diesel prices has broad economic implications, driving up food and logistics costs, potentially compressing consumer disposable income, and hindering economic recovery
The energy shock triggered by the US-Iran conflict continues to transmit to the consumer end, pushing US fuel retail prices to their highest levels in history during this period, further fueling inflation and placing severe pressure on the upcoming summer travel season.
Data from the American Automobile Association (AAA) shows that this Monday, the national average gasoline price reached $4.12 per gallon, surpassing the $4.07 peak set during the 2022 oil price surge triggered by the Russia-Ukraine war. The average diesel price reached $5.65 per gallon, more than 60 cents higher than the historical high of the same period in 2022.
Since the US and Israel launched military strikes against Iran in late February this year, US gasoline prices have accumulated an increase of over $1.10 per gallon. Although recent market expectations regarding the prospects of a ceasefire negotiation between the US and Iran have led to a slight decline in retail fuel prices, overall levels remain high.
US Energy Secretary Chris Wright told Fox News on Tuesday that gasoline prices may remain elevated for "the coming weeks."
This aligns with last week's forecast released by the U.S. Energy Information Administration: if the conflict ends in April, the national average retail gasoline price for the second quarter is expected to reach $4.16 per gallon, followed by a gradual decline, with the fourth-quarter average projected to fall to $3.55 per gallon. This means that even if the situation eases, consumers will still face fuel costs higher than those of the same period in previous years for a considerable time.
The impact of high diesel prices on the economy is particularly widespread. As the primary fuel for freight, agriculture, and industrial production, rising diesel costs directly push up terminal consumption prices for food, logistics, and other sectors, a ripple effect already reflected in inflation data.
At the same time, rising aviation fuel costs have also been transmitted to ticket prices, adding pressure to the peak summer travel season. Analysts point out that if energy prices continue to maintain current levels, they will further compress consumer disposable income and pose obstacles to overall economic recovery.
Risk Disclosure and Disclaimer
There are risks in the market; investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions contained herein are suitable for their specific circumstances. Investment decisions made based on this content are the sole responsibility of the investor.
