Gas prices soared in the US as Americans continue to hoard fuel and stockpiles continue to grow.
The surge in the price of US natural gas and diesel fuel fuelled the surge in fuel prices last week, and analysts say the increase is likely to continue.
According to data from GasBuddy, the average price of a gallon of diesel fuel jumped nearly 3 per cent on Tuesday.
“The price of diesel has continued to skyrocket in recent weeks,” said GasBucket analyst Mark DeLong in a report.
“The price jump was almost completely driven by the rise in gasoline prices, which were up more than 10 per cent from the previous week.”
GasBucket says the rise of diesel prices is likely a response to the government shutdown.
Gas prices are expected to continue rising for at least the next few weeks.
The average US household will spend $2,000 per year on fuel in January, and the government has already cut the amount of fuel that can be bought from the energy sector to $3 a gallon.
The US is now set to overtake Europe as the world’s biggest gas importer, according to the US Energy Information Administration (EIA).
The EIA has said that demand from the US is expected to grow by 40 per cent over the next two years.
The agency expects US demand to exceed demand from Europe by 2025, the first year after the 2020 election.
Last week, the US Treasury said it would raise the gasoline and diesel taxes by 3.5 cents per litre.
EIA data show that the increase in fuel taxes is likely linked to higher fuel prices.
A study released earlier this month by GasBuddys said that average gas prices were expected to rise by 4.5 per cent by the end of next year.
