Gas Prices Near $4.50 as Sun Belt Drivers Face a Costly Fall

Gasoline prices are climbing again just as summer driving winds down, leaving households across the Sun Belt with another expensive line in the monthly budget.

The national average for regular gasoline reached $4.47 a gallon Friday, according to AAA, after rising about 17 cents in a week. A month ago, drivers were paying roughly 40 cents less. Compared with a year ago, the difference is about $1.27 a gallon.

For a driver buying 12 gallons a week, that year-over-year increase works out to roughly $15 more each time the tank is filled. If the difference lasted for a full year, the added cost would approach $800.

The increase is especially noticeable across the Sun Belt, where long commutes and car-dependent suburbs make fuel prices difficult for many households to avoid. Georgia remains among the less expensive states, while drivers in Florida and especially Arizona are paying more.

The bigger concern may be diesel. The national diesel average has climbed to about $6.45 a gallon, a price that reaches far beyond drivers of diesel pickups. Diesel powers much of the trucking, construction and agricultural equipment that moves food, building materials and consumer goods around the country.

That means the latest fuel increase can eventually show up in places that have nothing to do with a gas station.

Oil Prices Ease, but the Risk Hasn’t Gone Away

There was some encouraging news in energy markets Friday.

Saudi Arabia is moving additional crude through Oman, with roughly 60 million barrels expected to be exported through ship-to-ship transfers during September and October. The additional supply has helped relieve some of the immediate pressure on oil markets.

But the situation remains volatile. Brent crude was trading above $100 a barrel Friday as markets continued to weigh disruptions to Saudi infrastructure and instability along major Middle Eastern shipping routes. Traffic through the Strait of Hormuz remains far below normal levels. Preliminary shipping data showed only four commodity vessels passing through Thursday, compared with a recent 10-day average of 16.

That leaves American drivers in an unusual position: oil prices have retreated from some of their recent highs, but gasoline and diesel prices are still working their way higher.

Pump prices do not move in perfect step with crude oil. Refining costs, fuel inventories, transportation and local market conditions all affect what motorists ultimately pay.

The result is that falling crude prices do not necessarily produce an immediate decline at neighborhood gas stations.

A Bigger Household Expense

At $4.47 a gallon, a 15-gallon fill-up costs about $67.

For a two-car household filling two 15-gallon tanks twice a month, gasoline alone would cost roughly $268 a month at the current national average. Actual spending varies widely depending on mileage, vehicle efficiency and local prices, but the increase becomes substantial for families driving to work, school, activities and errands every day.

Sun Belt communities are particularly exposed because many of the country’s fastest-growing suburbs were built around driving rather than public transportation. And fuel prices can spread through household budgets indirectly.

A contractor operating several trucks pays more to reach job sites. A landscaping company pays more to run equipment. Farms and trucking companies face higher diesel bills. Delivery businesses have to absorb the increase or eventually recover it through higher prices.

That makes diesel worth watching even for consumers who never buy a gallon of it themselves.

What Happens Next

There is at least a path toward lower prices. Additional Saudi exports and the recent easing in crude prices could eventually reduce pressure on gasoline if supplies continue to improve. But the energy market remains unusually sensitive to events in the Middle East, particularly disruptions affecting major shipping routes and Saudi oil infrastructure.

For now, the number motorists see from the driver’s seat remains stubbornly high.

AAA’s $4.47 national average Friday is nearly 20 cents higher than it was only a week ago. Even in comparatively less expensive parts of the Sun Belt, the days of casually filling the tank without looking at the total have disappeared again.