Record High Fuel Costs
U.S. Gasoline Prices Set September Records Amid Rising Crude Costs and Global Supply Disruptions
Anonymous
U.S. gasoline prices are on track for a record-high September, with the monthly average around $4.30 per gallon—well above the previous September record of $3.83 set in 2023—and recent national averages near $4.48. Prices usually ease in autumn, but high crude costs, volatility around the Strait of Hormuz, geopolitical tensions, refinery disruptions and tightening supplies have kept fuel expensive as demand edged higher. California’s average reached $6.37 a gallon, close to its record of $6.44, prompting Gov. Gavin Newsom to order an early switch to cheaper winter-blend gasoline that could increase supply and ease prices. Prices vary by region, with Western Pennsylvania seeing a small weekly decline and New Jersey below the national average; California remains among the most expensive markets and Texas among the least expensive. Diesel has also reached record levels, raising freight and business costs that could feed through to consumer prices.
Key Points
1
California’s early switch to winter-blend gasoline could add an estimated 5% to 10% to the state’s gasoline supply. Most of the state normally makes the switch on Oct. 31; winter blend is less complex and less expensive to produce, while summer blend is formulated to reduce evaporation and smog.
2
The national average for diesel reached a record $6.53 per gallon on Sept. 22, according to AAA.
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The price pressures included specific disruptions to oil infrastructure: an Iranian-backed Houthi group attacked Saudi oil routes, a major Saudi pipeline was temporarily closed after a drone attack before reopening, and Ukrainian attacks on Russian refineries also contributed to the increase.
4
Public EV charging costs were unchanged, with the national average holding at 42 cents per kilowatt-hour that week.
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