With fuel prices having a direct impact on the overall economy, analysts say we could be in for a very rough summer unless the war in Iran comes to an end very soon. According to GasBuddy.com, the current statewide average for regular unleaded gasoline is $3.78 a gallon, with diesel averaging $5.32 a gallon. Petroleum analyst Patrick DeHaan says we likely have not seen the worst of it.
“As long as the Strait of Hormuz continues to be blocked, closed, kinked or any other word you’d like to use, we’re going to see gasoline and diesel prices go higher,” DeHaan said.
Oil prices did start to come down yesterday in light of the two-week ceasefire. DeHaan says because of that, gas stations have not started to buy cheaper gasoline yet to ease the pain at the pump.
“Until the relief lasts, a lot of stations aren’t necessarily going to be having the cheaper fuel in their tanks just yet,” DeHaan noted.
The summer travel season is rapidly approaching; and DeHaan says if fuel prices continue to increase, that will have a devastating effect on summer travel, both by car and by airplane.
“The longer this persists, the more detrimental it will be to the U.S. economy this summer. The numbers are not looking good at all in that regard,” DeHaan said.
Comments