* Average pump price on Thursday was $3.88 a gallon, AAA
says
* Gasoline to hit $4/gallon next week, head higher,
GasBuddy says
* Last time US gasoline was $4 a gallon was in August,
2022
By Nicole Jao
NEW YORK, March 19 (Reuters) - U.S. gasoline pump prices
have jumped more than 30% this month,moving toward $4 a gallon
despite efforts by President Donald Trump to curb price
increases and contain supply disruptions stemming from the
Middle East war.
U.S. national average retail gasoline prices have climbed
about 90 cents a gallon, or more than 30%, since the U.S. and
Israel attacked Iran at the end of February. The average pump
price on Thursday was $3.88 a gallon, according to data from the
American Automobile Association or AAA.
Analysts said they expect pump prices to go higher, as crude
prices continue to surge. U.S. West Texas Intermediate crude
futures have jumped nearly $30, or 43%, from $67.02 a barrel to
$96.14 over the same period.
"It now looks like gasoline will hit $4/gal next week and
could head toward $4.10/gal and beyond," wrote GasBuddy analyst
Patrick De Haan on X.
The $4 per gallon milestone, last reached in August 2022,
will further pressure consumers already strained by inflation.
Surging pump prices have become a political headache for Trump
and his Republican Party, which will soon be campaigning to hold
onto thin majorities in the U.S. Congress in November midterm
elections.
Trump had vowed to lower energy prices and ramp up U.S. oil
and gas production. But so far, much of his second term has been
marked by volatile markets, shifting policies like tariffs and
geopolitical turmoil.
The U.S.-Israeli war on Iran has choked supplies from one of
the world's top oil-producing regions, as Iran's attacks on
shipping in the Strait of Hormuz have disrupted exports from
producers in the Middle East.
Retail fuel prices have surged in tandem with oil prices,
driven by increasing feedstock costs.
TOO LITTLE, TOO LATE?
This week, the Trump administration announced a 60-day
waiver of the Jones Act shipping law. The step will temporarily
allow foreign-flagged vessels to move fuel, fertilizer and other
goods between U.S. ports. Industry insiders expect it to have
only a marginal impact on price increases.
"Oil prices are set independently of transportation costs.
The waiver will only allow additional ships to carry supplies,"
said a fuel trading source who was not authorized to speak on
the record.
"I don't think it will dramatically lower prices," the
source added.
"Motorists hoping for a plummet at the pump from the Jones
Act waiver are probably going to be disappointed," GasBuddy's De
Haan said.
The Trump administration is also expected to announce a
decision to waive summer gasoline regulations which would
temporarily lift federal smog-cutting restrictions on
summer-blend gasoline.
Such a waiver could shave 10 to 20 cents a gallon off retail
gasoline prices, De Haan said, adding that consumers in cities
including Chicago, New York and Washington, D.C., where
reformulated gasoline is used, may save the most at the pump.