Saudi Pipeline Closure Puts Squeeze on US Fuel Prices

Fuel prices in the US are expected to continue rising as Saudi Arabia's critical pipeline remains closed after a drone strike. The pipeline, which can move 7 million barrels of crude oil per day, is currently unable to operate at full capacity due to damage from the attack. According to petroleum consultant Andrew Lipow, if Saudi Arabia needs to repair pump stations to restart the pipeline, it could be out of commission for one to two months.

The national average gas price has already hit $4.46, with diesel prices reaching a record high of $6.44 per gallon. California is experiencing the highest diesel prices in the nation, averaging $8.39. Lipow warns that these high fuel costs will impact not only drivers but also businesses and consumers through higher delivery charges and fuel surcharges.

Recent polls show that 61% of registered voters consider gas prices a major problem, a 13-point jump from two years ago. American households have paid an extra $460 on gas and $378 on diesel since the start of the Iran war. Policy proposals to lower fuel prices include suspending the federal gas tax, but with the House of Representatives out of session until after the midterms, any action is uncertain.