On May 11, 2022, gasoline and diesel fuel prices in the U.S. reached an all-time high.[1] According to the American Automobile Association (AAA), the nationwide average price for regular gasoline was $4.40/gallon, a roughly $0.17 increase from the previous week. Diesel prices hit $5.55/gallon. The price increase comes just two months after the last record-breaking prices were recorded. A year ago, gasoline was $2.99/gallon and diesel was $3.13/gallon. According to the Energy Information Administration (EIA), increasing prices are likely due to decreasing gasoline inventories.[2] Total U.S. gasoline inventories decreased by 8.2 million barrels (3.5%) from March to April, partially due to increased driving. The EIA estimates that gasoline consumption increased to 8.7 million barrels/day in April, a 1% increase from March. Gasoline prices at the pump will likely face upward pressure as oil prices remain above $105/barrel.
[1] https://gasprices.aaa.com/
[2] https://www.eia.gov/outlooks/steo/marketreview/petproducts.php