U.S. motorists should brace for more increase in gasoline prices, as the national average was about $3.78 per gallon on August 1.
This has marked an increase of roughly 25 cents over the past month, according to motor club AAA’s data.
These recent costs remain much lower than the peak seen last year, following the global energy price surge in the aftermath of Russia’s Ukraine invasion.
Experts highlight the peculiarity of this price jump, as significant increases are usually associated with large-scale events, such as hurricanes.
The heat factor: Summer temperatures impact on refineries
Additionally, the current trend shows fewer people fueling their vehicles this summer compared to previous years. In the U.S., gas prices are heavily influenced by crude oil prices.
Several contributing factors have been identified for the rising oil prices, including global supply production reductions and the extreme summer heat impacts on refineries.
More on gas prices in the US
- Florida gas prices jump 10 cents in past week: AAA
- Florida gas prices decline as Floridians prepare for a Independence Day road trip
Causes of escalating gas prices
Record-breaking summer temperatures are partially responsible for the escalating gas prices.
Experts believe that the intense heat, while keeping people indoors, also hampers refinery output, which are usually operational within a temperature range of 32 to 95 degrees Fahrenheit (0 to 35 degrees Celsius).
Extreme temperature conditions can pose safety threats, leading refineries to decrease their production, hence constricting supply.
Experts further reported that the United States’ refining capacity on the Gulf Coast, which approximately processes 10 million barrels daily, has been compelled to function below its regular capacity due to the heat wave, resulting in a reduction of hundreds of thousands of barrels each day.
Despite this, refineries operating without issues have been making significant profits. The current domestic demand sits at about 9 million barrels a day, slightly lower than projected for peak summer months. However, the U.S. continues to export a substantial amount of gasoline.
Explanation from experts also indicates that additional elements like crude supply reductions from major OPEC+ countries also factor into the equation.
Gas prices in different states
Certain U.S. regions endure higher gas prices than others, a result of factors ranging from routine regional refinery maintenance to constrained supplies in some states.
According to a AAA dated August 1, California had the nation’s highest gas prices at an average of $5.01 per gallon, followed by Washington and Oregon at $4.96 and $4.92, respectively.
Mississippi had the lowest average at about $3.29 per gallon, followed by Louisiana at $3.39 and Alabama at $3.40.
