During the US summer driving season, gasoline and diesel prices have surged to unprecedented levels for this time of year. Data from the American Automobile Association indicates that both gasoline and diesel costs have set new records for the same period. In the second week of August, the average price of gasoline in the US reached $4 per gallon, while diesel hit $5.40 per gallon, marking the highest ever for this timeframe.

This period is typically the peak travel season, with millions of Americans embarking on road trips for vacations or family visits. Last year at this time, gasoline was priced at $3.20 per gallon, and diesel at $3.70 per gallon. There are few signs of immediate relief in the near term.

Ongoing tensions between the US and Iran, along with the persistent conflict between Russia and Ukraine, have constrained crude oil and fuel supplies from these major producing regions. The US Energy Department projects that the average gasoline price for the current quarter will be $4 per gallon, decreasing to $3.72 per gallon in the fourth quarter, though this remains well above seasonal norms.

Diesel, a critical fuel for trucking and industrial operations, is expected to drop to just under $5 per gallon by year-end. Compared to a month ago, these forecasts have been significantly revised upward. Meanwhile, data released by the US government on Wednesday showed that national gasoline inventories have fallen to their lowest level since November 2025. In regions like New York and New Jersey, stockpiles have dropped to their lowest since November 2024.

According to the Federal Reserve Bank of St. Louis, American cars and trucks travel approximately 3 trillion miles annually. The surge in fuel costs is likely to become a key issue for drivers and politicians in the second half of the year. After the summer driving season, gasoline demand typically declines. At the same time, refiners will aim to maximize diesel production to compensate for supply shortfalls, which may limit the recovery of gasoline inventories as refineries reduce output, thereby keeping gasoline prices elevated.

However, current fuel prices remain below the peaks reached earlier this year during wartime, and those highs did not match the historic spikes seen after Russia's invasion of Ukraine.