All articles tagged with #gasoline prices
Former President Donald Trump accused ExxonMobil, Chevron, Shell and BP of price gouging drivers, claiming wholesale oil costs have fallen and pump prices should be about $2.25 per gallon; he asked the DOJ to immediately investigate, while the oil industry group API disputed the characterization and officials noted that geopolitical events and supply dynamics influence gasoline prices.
Oil prices fell as fears of Hormuz-related disruptions eased and shipping activity began to normalize, while Trump urged a DOJ probe into gasoline price gouging after crude declined.
Ukrainian drone strikes on Russia’s oil infrastructure have forced refinery shutdowns, notably Gazprom Neft’s Moscow plant, removing about 600,000 barrels per day from domestic refining and risking a 28% seasonal capacity drop. Moscow is enforcing fuel rationing, prices are rising, and Russia is importing gasoline from Asia while considering regulatory changes and an end-of-July export ban to redirect inventories and bolster state needs.
Oil prices face renewed upside risk as the Strait of Hormuz disruption and thinning inventories erode buffers; analysts warn that if the strait stays closed by Labor Day, Brent could jump to about 130–150 per barrel, with gasoline prices likely to rise as U.S. and global stockpiles approach critical minimums, despite SPR releases and other buffers.
With U.S. gas prices climbing toward $5 a gallon, Trump has floated suspending the 18-cent federal gas tax—a move that would require Congress. NBC News’s analysis shows that even a complete pause on all state and federal taxes would leave prices about 35% higher than they were at the war’s start. The average driver pays roughly 51 cents per gallon in taxes and fees, of which 18 cents go to the federal government; Georgia has already paused its own tax, and a broader pause would affect highway and transit funding via the Highway Trust Fund.
Economists describe the ‘rocket-and-feathers’ phenomenon: retail gasoline prices spike quickly when crude oil rises but fall slowly as crude retreats, driven by forward-looking replacement costs, slim retailer margins, and competitive dynamics at the pump. Consumer search behavior intensifies price increases but wanes as prices drop, while regional market structures—especially California—can magnify the effect. Media coverage and supply-chain constraints also play roles, and even if tensions with Iran ease, pump relief is unlikely to come promptly.
U.S. average gasoline prices topped $4.50 a gallon (per GasBuddy), the highest since mid-2022, with California well over $6 in many spots, as ongoing Strait of Hormuz disruptions and the Iran conflict push crude higher and tighten fuel inventories; analysts warn the summer driving season could bring further gains, with overall prices about $0.50 below the 2022 all-time high.
California’s last Persian Gulf crude cargo has landed in Long Beach, highlighting the state’s growing reliance on foreign oil as it faces the potential loss of about 200,000 barrels per day if the Strait of Hormuz remains blocked; with aging fields and constrained refinery capacity, California may need to source crude from Canada, Brazil, Ecuador and other regions, while inventories and state planning cushion near-term risk and analysts warn prices could rise without stronger demand-side relief.
Oil prices rose more than 2% (Brent near $107 for June; WTI around $96) and stock futures edged lower as the US-Iran standoff persists and Hormuz shipping disruptions threaten supplies; gasoline averaged about $4.10 a gallon and diesel surged roughly 45% since the conflict began, leaving markets cautious about further economic damage.
Trump administration officials backed away from firm timelines for when gasoline prices will fall due to the Iran conflict, saying relief depends on how long the war lasts. Treasury Secretary Scott Bessent and Energy Secretary Chris Wright offered cautious, non-guaranteed projections as pump prices hover above $4 a gallon and market volatility persists, with Republicans urging not to overstate timing.
Oil rose after the U.S. seized an Iranian-flagged cargo ship, keeping the Strait of Hormuz risk premium in markets with Brent around $95.42 and WTI near $89.77. Iran says the strait is closed again, complicating any transit restart, and analysts doubt a quick normalization. U.S. gasoline prices sit around $4.05 per gallon, with Energy Secretary Chris Wright suggesting sub-$3 levels may not return until next year. Vice President JD Vance will lead talks with Iran in Islamabad before Tuesday’s ceasefire deadline, offering a possible window to extend or end the conflict.
Global oil prices jumped and U.S. stock futures slid ahead of Monday’s session as the Iran-Houthi conflict neared its one-month anniversary, with Brent crude above $116 and U.S. crude near $103 amid supply fears and potential Strait of Hormuz disruption; 3,500 additional U.S. troops arrived in the region, Trump signaled a deal with Iran, and analysts warned prices could surge further, pushing gasoline costs higher.
Amid rising pump prices driven by the Iran war and a tighter global energy market, governors from both parties are largely avoiding gas tax holidays, noting that past attempts in 2022 provided little relief and that state budgets are stretched. Economists say suspending gas taxes would likely deliver minimal savings and could strain transportation funding, making federal action the more plausible lever, even as political calculations differ by state.
Stanford economists warn that higher oil and gasoline costs could largely offset the extra tax refunds Americans are set to receive this year. In a scenario where crude prices spike (with disruption to the Strait of Hormuz) but retreat later, U.S. households could spend about $740 more on gas this year, roughly canceling out the projected $360–$748 in additional refunds from last year’s tax changes. The result is a net drag on spending growth and inflation, with big variation by household — non-drivers and EV owners face less pain while long commuters face higher costs — making the outlook uncertain and tempering the hoped-for fiscal tailwind.
U.S. wholesale prices rose 3.4% in the latest month—the fastest monthly gain in a year—driven by higher energy costs as tensions around Iran push crude and gasoline prices higher.