Costco members and US motorists continue to face elevated gas prices even as crude oil prices fall below $90 per barrel (around £66.90). National averages have surged over recent weeks, leaving drivers paying more at the pump than many anticipated, while the volatile global oil market and geopolitical tensions maintain uncertainty for consumers.

Data from AAA shows the national average price for a gallon of regular gasoline reached $3.54 (£2.63), up six cents from the previous day. This marks a rise of more than 50 cents since late February, before theUnited States and Israel launched military strikes on Iran. On 27 February, the day before the conflict began, the average gas price was $2.98 (£2.22) per gallon according to GasBuddy, as reported by CBS News.

For Costco members, the retailer's gas stations generally offer lower prices than local averages, with some stations such as those around San Francisco reporting regular fuel at about $4.20 (£3.12) a gallon — roughly 30 to 40 cents cheaper than nearby non‑warehouse stations at times. This pricing can vary widely by location, but many Costco gas sites remain below the highest regional retail averages amid market volatility.

However, even warehouse club members may see pump prices inch upward as the effects of recent global events ripple through the market. Analysts predict prices are likely to remain elevated in the near term despite recent declines in crude oil.

Crude oil has experienced exceptional volatility in recent weeks. Brent crude, the international benchmark, jumped to around $85 per barrel (£63.19) from roughly $70 (£52) at the end of February, while West Texas Intermediate, the US benchmark, rose to about $80 (£59.47) from $67 (£49.81) over the same period.

Patrick De Haan, petroleum analyst at GasBuddy, told CBS News that drivers should expect high gas prices for several weeks. According to De Haan, despite a decline in crude oil prices, gasoline costs are expected to remain above pre-conflict levels because of seasonal demand and production considerations

The summer-blend gasoline, required from 1 June to 15 September, also contributes to higher pump costs. This blend is more expensive to produce and includes additives designed to reduce evaporation during warmer months. According to the American Fuel and Petrochemical Manufacturers, summer-blend gasoline typically adds around 15 cents per gallon to retail prices.

The ongoing conflict in the Middle East continues to weigh on fuel costs. About 20% of the world's oil supply passes through the Strait of Hormuz, a narrow waterway that Iran has recently threatened to disrupt. Tankers remain cautious, with some routes effectively closed except for Iran-linked traffic, creating a supply bottleneck that has further pressured prices.

Wayne Winegarden, senior fellow at the Pacific Research Institute, said the market remains uncertain. 'Oil prices have been exceptionally volatile. It is difficult for producers to accurately price gasoline in such an environment,' he said.

Nigel Green, CEO of investment advisory firm deVere Group, noted that markets are beginning to price in a potential end to the conflict. 'Oil dropping back below $90 and equities pushing higher tells us investors are anticipating tensions may cool while supply disruptions remain limited,' he said.

Source: International Business Times UK