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- US gas prices just hit their highest summertime levels in over a decade even as the driving season comes to a halt.
- The national average for a gallon of gas rose to $3.80, notching the second-highest level ever, per AAA.
- Rising crude-oil prices driven by production cuts are largely to blame for the surge in costs at the pump.
US gas prices just hit the highest summertime levels in 10 years even as driving season comes to an end, Bloomberg first reported.
The national average for a gallon of gas climbed to $3.80 on Wednesday, surpassing last year's highs and notching the second-highest level ever, per AAA.
Fuel prices have climbed even as the holiday season winds down, which typically leads to a decline in gasoline demand among drivers.
Rising crude-oil prices could be a key factor contributing to higher gas costs. Global oil markets have rallied in recent weeks, thanks to supply cuts by the world's top producers including Saudi Arabia and Russia.
Brent crude, the international benchmark, jumped to $90 a barrel Tuesday for the first time in 2023 after both Saudi Arabia and Russia extended oil production cuts of 1.3 million barrels a day through December 2023 in a bid to maintain price stability.
Higher US gas prices are a problem for the Federal Reserve, which has been trying to tame historically high inflation. The central bank has already hiked interest rates by more than 500 basis points since March 2022, helping lower the pace of consumer-price increases to 3.2% in July from last year's highs above 9%.
But the jump in fuel prices is threatening to derail the progress the Fed has made in taming inflation.