Story perspectives

Gas Prices Hit Record $4.15, Diesel $5.85

9/7/2026

Summary

Story summary

U.S. drivers are paying a record $4.15 per gallon for gasoline and $5.85 for diesel.
Analysts say price spikes stem from fighting near Strait of Hormuz, Ukrainian attacks on Russian refineries, and shrinking inventories.
Energy Secretary Chris Wright said the administration is working to push prices down and futures suggest declines.
MIT professor Christopher Knittel estimated a $1 per gallon increase adds about $60 to an average household’s monthly budget.

History

Historical Context

In October 1973 OAPEC, led by Saudi Arabia, imposed an oil embargo that cut Middle-East exports to the United States and pushed world oil prices up nearly 300% by 1974. The shock prompted Nixon’s administration to create the Federal Energy Office, ration gasoline and raise retail prices 43% to 55.1 ¢ per gallon. Today U.S. drivers pay $4.15 per gallon as tensions echo the 1973 crisis.

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Story summary

U.S. drivers are paying a record $4.15 per gallon for gasoline and $5.85 for diesel.
Analysts say price spikes stem from fighting near Strait of Hormuz, Ukrainian attacks on Russian refineries, and shrinking inventories.
Energy Secretary Chris Wright said the administration is working to push prices down and futures suggest declines.
MIT professor Christopher Knittel estimated a $1 per gallon increase adds about $60 to an average household’s monthly budget.

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