U.S. National Gasoline Price Rises to $3.88 per Gallon

The national average price of regular gasoline rose to $3.88 a gallon on Friday, up four cents from a week earlier, according to AAA data. Prices had fallen to $3.80 on July 5 after a temporary ceasefire between Washington, D.C., and Tehran last month.

The average stood above $4.50 in May and had dropped to $2.98 before the Iran conflict began in late February. AAA stated that prices are rising again because the future of the ceasefire remains uncertain.

Ship traffic through the Strait of Hormuz fell to 34 vessels on Thursday, the lowest daily total since June 28, according to S&P Global MINT and S&P Global Commodities at Sea. Iran-linked and sanctioned traffic accounted for roughly one-third of crossings on July 9.

The price of oil makes up 51 percent of the cost of a gallon of gasoline, the Energy Information Administration reported. Refining costs account for about 20 percent, with the remainder tied to marketing, distribution, and taxes.

Russian oil facilities have removed refined products from the global market, Patrick De Haan of GasBuddy said. Russia has banned diesel exports in addition to prior limits on gasoline and jet fuel exports. Seasonal summer driving demand and the switch to summer-blend gasoline, which can add 10 to 25 cents per gallon, are also contributing to higher prices.