Gasoline Nears $5: Drivers Brace for Impact

U.S. Gasoline Prices Approach $5 Mark U.S. gasoline prices are nearing $5 per gallon, driven by a disconnect between crude oil and refined product markets. As of May 8, 2026, average U.S. gasoline prices reached $4.56 per gallon, with some regions already exceeding $5. This increase is attributed to refiners prioritizing middle distillates like jet fuel, leading to reduced gasoline production.

JPMorgan analysts indicate that crude shortages have compelled refiners in Asia and Europe to cut operations by 2.1 million barrels per day (mbd) in March and 3.8 mbd in April. Concurrently, the market has lost an estimated 4.7 mbd of refined product exports from the Middle East. This has tightened the availability of usable fuels, including gasoline, diesel, and jet fuel.

American refiners have increased jet fuel yields by approximately 2 percentage points to capitalize on high margins in global markets, leading to record jet fuel exports. However, this shisources has resulted in a 2 percentage point decrease in gasoline yields and a 340,000 barrels per day reduction in gasoline production compared to the previous year. This reduction coincides with the unofficial start of the U.S. driving season at the end of May, exacerbating price pressures.