Gas Prices May Hit $5 This Summer as Refineries Make More Jet Fuel

Get ready to pay more at the pump this summer. Gas prices could reach $5 per gallon by July or August because U.S. refineries (facilities that turn crude oil into usable fuels) are making a surprising choice: they're producing more jet fuel for airplanes instead of gasoline for cars.

Why are refineries doing this? It's all about money. Right now, refineries can earn more profit by making jet fuel than gasoline. This shift started because of conflicts in the Middle East that disrupted oil shipping routes, particularly through the Strait of Hormuz (a crucial waterway where 20% of the world's oil normally passes through). With this route essentially closed, Europe desperately needs jet fuel from other sources.

Here's what's happening: • U.S. jet fuel exports hit a record 455,000 barrels recently • Gasoline stockpiles are 5% below normal levels for this time of year • Diesel supplies are 3% below average • Gas prices already average over $4 per gallon nationwide

What does this mean for you? With refineries focusing on jet fuel production, there's less gasoline being made just as summer driving season begins. When supply is low and demand is high, prices go up. One expert predicts we could see $5-per-gallon gas by mid-summer – a price not seen since 2022 after Russia invaded Ukraine.

The bottom line: While airlines avoid a fuel shortage crisis, American drivers will likely face painful prices at the gas pump this summer. Refineries will keep prioritizing jet fuel as long as it remains more profitable than making gasoline.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/think-gas-prices-are-high-now-this-quiet-shift-at-u-s-refineries-could-trigger-an-even-more-painful-summer-9f788044?mod=mw_rss_topstories