Record-Breaking Inflationary Gas Prices on Labor Day in the US
TEHRAN (Defapress) - American drivers are welcoming the Labor Day holiday while the cost of filling up their cars across the country has reached its highest level in history for this period. According to a report by the American Automobile Association(AAA), the average price of a gallon of regular gasoline on the eve of this holiday has reached $4.14, which, in addition to growing by about a dollar compared to last year, has also surpassed the previous Labor Day holiday record in 2012 ($3.82). At the same time, the price of diesel has set a new record of $5.85 per gallon, imposing a new and heavy wave of inflationary pressures on the supply chain and the living costs of families.
The main reason for this sudden and lasting surge is geopolitical developments and military conflicts in West Asia. After the US and Israeli military attack on Iran in February, the passage of oil tankers and crude oil through the strategic Strait of Hormuz has sharply decreased, and the closure of this key energy highway by Iran has sent a deep shock to the global fuel market; a shock that Tom Seng, a professor of energy finance at Texas Christian University, considers the main cause of the current crisis.
But the fuel crisis is not limited to West Asia. The diesel supply shortage has been exacerbated by Ukrainian drone attacks on Russian refineries and a drop in production at Chinese refineries. In the United States, refineries are also operating at 98% capacity and under the pressure of the sweltering Texas heat, a situation that has increased the risk of technical malfunctions or monsoon storms and minimized the possibility of any price decline in the short term. The unprecedented increase in diesel prices has quickly passed on the cost of transporting essential goods and shipments to buyers, shrinking consumer budgets.
This unprecedented combination of regional tensions, refinery crises, and inflationary pressures has made the last summer vacation one of the most expensive for Americans. As citizens are forced to choose between living expenses and leisure travel, the lack of a clear vision for reopening energy highways and stabilizing fuel markets suggests that the shadow of this crisis will remain over household finances for an unknown future.
