Record Fuel Prices
Gas and diesel prices reach record seasonal highs in August, defying typical end-of-summer trends.
Americans are paying more for fuel in August than ever before at this time of year. Gas hit an average of $4 a gallon in the second week of August, while diesel reached $5.40 a gallon — both record highs for this point in the calendar, according to Orlando Sentinel.
The timing could not be worse for drivers. Millions of Americans hit the road in August for vacations and family visits, making this one of the busiest travel periods of the year, Daily Press noted.
Record Prices Hit Drivers During Peak Travel Season
Gas at $4 a gallon in mid-August is a first. Previous years never saw prices this high this late in the summer. Diesel at $5.40 a gallon is also a record for this week of the year, according to Sun Sentinel.
These prices sit below the all-time peaks set earlier in 2022. Fuel spiked to even higher levels right after Russia invaded Ukraine. But prices are still far above what Americans normally pay in late summer, San Diego Union-Tribune reported.
Gas Expected to Stay Above $3.70 Through Year End
The U.S. Department of Energy forecasts gas will average $4 a gallon for the entire third quarter. That covers July through September. Relief may come later — but not much. The agency sees prices falling to $3.72 a gallon in the fourth quarter, Press Democrat reported.
That fourth-quarter forecast is still well above normal seasonal prices. A year ago, gas cost far less heading into fall. The drop from $4 to $3.72 would give drivers some breathing room, but bills at the pump will remain painful, Daily News noted.
Diesel Forecast Revised Sharply Higher for Late 2022
Diesel prices are also expected to stay high. The Department of Energy now sees diesel falling to just under $5 a gallon by the end of the year. That number is a major upward revision from just a month ago, according to Daily Breeze.
Diesel matters beyond the gas station. Trucks that move food and goods across the country run on diesel. Higher diesel costs push up prices for everything from groceries to furniture. Businesses that rely on shipping are already feeling the squeeze, Greeley Tribune noted.
How Current Prices Compare to War-Time Spikes
Prices are still short of the peaks hit earlier in 2022. When Russia invaded Ukraine in February, global oil markets went into shock. Gas soared past $5 a gallon nationally for a brief period. Today's $4 average is high — but not that high, OC Register reported.
Still, the fact that prices remain at $4 in August — a month when they usually start to ease — signals something unusual. Seasonal patterns are broken. What once counted as a summer peak is now the new normal heading into fall, Trentonian noted.
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