US gasoline rises to $4.20 per gallon ahead of elections — CNBC

In the United States, the average price of gasoline ahead of the midterm elections stood at $4.20 per gallon — nearly 40% higher than during the same period last year. Diesel fuel, which is important for transportation and agriculture, rose by about 70% over the year to $6.32 per gallon, CNBC reports.

Patrick De Haan, head of petroleum analysis at GasBuddy, predicts that gasoline and diesel prices on election day could become the highest on record. According to him, fuel prices have never been recorded at such a high level so late in the year.

Fuel has become a political issue

During the 2024 election campaign, US President Donald Trump promised to lower the price of gasoline below $2 per gallon during his first year in office. In September 2024, he said that his plan would make it possible to reduce energy costs by at least half within 12 months.

Rising prices have increased political pressure on the president ahead of the vote. The high price of diesel particularly affects agricultural states, including Iowa. Trump considered banning diesel fuel exports but abandoned the move because of the risk of further increases in gasoline prices.

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Instead, he issued an order allowing trucks to use tax-exempt diesel fuel intended for off-road equipment on US highways. The administration also announced an $8 billion assistance program for farmers because of high fuel costs.

The impact of conflicts on the oil market

According to CNBC, fuel prices began to rise sharply after the joint US-Israeli attack on Iran on February 28. In response, Tehran carried out a series of strikes on tankers passing through the Strait of Hormuz, significantly reducing the volume of oil transported via this route.

The situation was also complicated by Houthi attacks on Saudi Arabian oil refineries and Ukrainian strikes on oil refining facilities in Russia, the aggressor state. The White House said that gasoline prices should fall significantly after the conflict with Iran ends.

At the end of October, oil prices rose again: Brent gained more than 13% over the month, while US WTI rose by 15%. De Haan noted that further escalation could additionally raise prices ahead of Thanksgiving, when Americans traditionally travel extensively by car.