U.S. gasoline and diesel retail prices hit record highs, Energy Secretary says "may last for weeks"

The energy shock triggered by the US-Iran war continues to transmit to the consumer end, with US retail oil prices now at the highest level in history for this period, further driving up inflation and putting severe pressure on the upcoming summer travel season.

Data from the American Automobile Association (AAA) shows that this Monday, the national average gasoline price reached $4.12 per gallon, surpassing the $4.07 recorded during the spike caused by the US-Russia-Ukraine conflict in 2022. Diesel averaged $5.65 per gallon, over 60 cents higher than the historical peak in the same period in 2022.

Since late February, when the US and Israel launched a military strike against Iran, the price of US gasoline has cumulatively risen over $1.10 per gallon. Although recently the market has been optimistic about the prospects of ceasefire negotiations between the US and Iran, retail oil prices have only slightly retreated and remain at elevated levels overall.

US Energy Secretary Chris Wright stated in an interview with Fox News on Tuesday that gasoline prices may remain high "for several weeks."

Last week’s forecast released by the US Energy Information Administration confirms this: if the conflict ends in April, the national average retail gasoline price in the second quarter is projected to reach $4.16 per gallon, and then gradually decrease, with the fourth quarter average expected to fall to $3.55 per gallon. This means that even if the situation calms down, consumers will bear a higher fuel cost for a considerable period compared to previous years.

The elevated diesel price has an especially broad economic impact. As the primary fuel for freight, agriculture, and industrial production, rising diesel costs directly push up terminal consumer prices such as food and logistics, a chain reaction already reflected in inflation data.

Meanwhile, rising aviation fuel costs have also been passed on to ticket prices, adding more pressure to the peak summer travel season. Analysts note that if energy prices remain at current levels, it will further squeeze consumers’ disposable income and pose a challenge to overall economic recovery.