Since the outbreak of the conflict with Iran, fuel prices have soared. According to data from the American Automobile Association (AAA), the average price of gasoline in the United States has risen by nearly a quarter compared to a year ago, reaching $3.80 per gallon, while diesel prices have risen by 30%, reaching $4.80 per gallon.
Recently, although crude oil prices have cooled somewhat, fuel prices are expected to remain high as long as the situation in the Strait of Hormuz remains unclear. Experts say that even if oil supplies in the Gulf region continue to increase, it will take time for the oil to enter the refined product market and lower the prices of gasoline, diesel, and other fuels. Carl Larry, an analyst at energy consulting firm Enverus, said, "There is a huge gap between refined product prices and crude oil prices. The key issue is that refining capacity is limited, while crude oil production is virtually unlimited even under current circumstances. Refined product prices will continue to rise." Global fuel supplies are further pressured by Russia. Previously, Ukrainian drone attacks on Russian refineries triggered Russia's worst fuel crisis since the collapse of the Soviet Union, after which Russia, the world's second-largest diesel exporter, banned diesel exports. "The current situation is volatile, and volatility can lead to price premiums, while uncertainty can also increase costs," said Ed Hears, an energy researcher at the University of Houston.
