As petrol prices get closer to all-time highs, Americans are getting ready for pricey summer travel

The skyrocketing gas prices and looming fuel shortages stemming from the war with Iran aren’t stopping Americans from hitting the road. As the summer travel season kicks off this weekend, though some are planning shorter trips to cut costs.

The average retail price of gasoline in the U.S. has remained above $4.50 since early May, 45% higher than before the U.S. and Israel launched attacks against Iran in late February. Prices for crude oil used to produce gasoline also skyrocketed. As did those of many other products, as the conflict effectively shut down the Strait of Hormuz. A key trade route through which approximately 20% of the world’s oil consumption passes.

The $4-per-gallon benchmark, which was exceeded in most of the United States more than a month ago. Is seen as a significant psychological barrier for consumers. After Russia invaded Ukraine in August 2022, that milestone was last attained.

President Donald Trump is facing mounting political pressure ahead of the November midterm elections, as households grapple with rising costs. The conflict with Iran has sent consumer inflation soaring to its highest level in nearly three years. With rising energy prices being one of the main factors.

Several states are already suspending gasoline taxes to ease the impact on gas stations, and similar discussions are underway regarding a reduction in the federal tax of 18.4 cents per gallon on gasoline. President Donald Trump is facing mounting political pressure ahead of the November midterm elections. As households grapple with rising costs. The conflict with Iran has sent consumer inflation soaring to its highest level in nearly three years. With rising energy prices being one of the main factors.

Several states are already suspending gasoline taxes to ease the impact on gas stations. Similar discussions are underway regarding a reduction in the federal tax of 18.4 cents per gallon on gasoline.

Gasoline inventories in the United States stood at 214.2 million barrels last week. A decrease of approximately 11.4 million barrels compared with the same period a year ago, the Energy Information Administration reported on Wednesday. By the end of April, inventories had fallen by 7% over a 28-day period, the largest drop in more than five years.

In addition to the uncertainty still looming over the Middle East, recent refinery disruptions, the impending Atlantic hurricane season, and tight global supplies will put further upward pressure on fuel prices.

A GasBuddy forecast released on Wednesday indicates that the national average price of gasoline is expected to be $1.48 higher this Memorial Day weekend than last year. The forecast adds that if traffic through the Strait of Hormuz remains restricted for much of the summer, prices could exceed $5 per gallon.