Saudi Pipeline Closure Could Fuel Another Month of Rising Gas Prices

Fuel prices are expected to continue rising in the US due to a critical pipeline closure in Saudi Arabia. The Saudi Aramco pipeline, capable of moving 7 million barrels of crude oil per day, remains closed after a drone strike damaged it.

The damage assessment is still underway, but consultant Andrew Lipow predicts that even if Saudi Arabia can bypass the pump stations, restoring operations at 50% capacity may take several days. However, if repairs are needed to restart the pipeline, it could be one to two months before fuel prices stabilize.

The national average gas price has already hit $4.46, while diesel broke another record high of $6.44, according to AAA. California is experiencing the highest diesel prices in the nation, averaging $8.39, which impacts not only Californians but also consumers nationwide due to increased delivery charges and fuel surcharges.