WASHINGTON, D.C. – Gas and petroleum experts predict the national average of gasoline will inch closer to four dollars a gallon in the next few days. In places like New York, Pennsylvania and Michigan, drivers are already seeing on average higher prices than four dollars a gallon. That’s not all, the national average of diesel has reached five dollars a gallon.
“Which is highly problematic because a lot of our truck drivers use diesel so that means the cost of groceries, the cost of anything you buy online is going to be more expensive because the transportation costs will be higher,” said Sen. Kirsten Gillibrand (D- NY).
Senator Gillibrand said ending the war with Iran could help bring down fuel costs.
“In the weeks ahead it remains a very volatile situation as long as the escalations continue, that increases the risk of oil and that will likely boost gasoline and diesel prices,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “It’s not just the Strait of Hormuz and the US-Iran situation that’s impacting gas and diesel prices, that’s really more focused on oil. Although there are some gas and diesel stuck in the Strait of Hormuz by some of the newest and largest refineries in the middle east so it’s not just oil. It’s also the refining capacity being cut off as part of the condition. The other part of this equation in the disconnect that’s growing between oil and gasoline is continued Ukrainian attacks on Russian oil refineries.”
“You can have all the oil in the world but if you don’t have anyone around to refine it that is going to disconnect the price of oil to the price of refined diesel, gasoline, jet fuel and other things and that’s part of the problem,” said De Haan. “Ukraine has knocked out some of the largest refineries in Russia and that’s why its contributing to a disconnect why oil is still relatively low and but gasoline, diesel and jet fuel is still relatively high because there’s a lack of refining capacity through some of those Ukrainian attacks on Russian oil refineries.”
