Gas Stations NAICS 457120

Jun 26, 2025 - Hurricane Risk

• An expected above-average Atlantic hurricane season raises the risk of weather-related supply disruptions and higher prices at the pump, the US Energy Information Administration said in May. High winds and flooding from hurricanes can damage offshore oil platforms or refineries concentrated along the Gulf Coast in Texas and Louisiana. That concentration means more than 1 million barrels per day of US refining capacity – roughly 5% of daily domestic petroleum consumption – is likely to be shut in anticipation of a major storm, per the EIA. Hurricane experts at Colorado State University are predicting a 70% storm chance and 44% hurricane chance this year for Texas, and 74% storm chance and 46% hurricane chance for Louisiana. Five hurricanes made landfall in the US in 2024, knocking out millions of barrels of oil and gas output and disrupting fuel supply in Florida, the agency said.
• The US Energy Information Administration is forecasting the inflated-adjusted average regular gasoline price this summer to be the lowest since 2020. The summer 2025 average price of about $3.10 per gallon is based on the average of the 2Q25 and 3Q25 US regular gasoline price, when increased travel during the warmer months of the year puts upward pressure on gas prices. Looking ahead to 2026, EIA is forecasting a US average summer retail price of regular gas near $3.20 per gallon. Compared with recent years, lower forecasted US gasoline prices in 2025 and 2026 are mainly a result of lower crude oil prices. Although the agency expects crude oil prices to continue to fall in 2026, creating a downward effect on gasoline prices, that effect is offset by refinery closures and lower gasoline inventories, which cause refining margins for gasoline to rise.

• President Trump has moved to pull the plug on the National Electric Vehicle Infrastructure program (NEVI), his predecessor’s initiative to build a nationwide network of EV charging stations, Politico reports. In February, Trump instructed states not to spend federal funds previously allocated to them under the program. In a letter to state transportation directors, the Federal Highway Administration said that it was scrapping guidance issued in 2023 implementing the NEVI program. However, the letter says states will be able to receive reimbursements for “existing obligations” to design and build stations "in order to not disrupt current financial commitments.” Whether Trump can choose not to spend funds allocated by congress is likely to face legal challenges. Still, the administration’s move to block future EV charging station construction and, more broadly, Trump’s pro-fossil-fuel policies, brighten the outlook for suppliers of traditional motor fuels.
• Producer prices for gasoline stations rose 10.8% in May compared to a year ago, after rising 2.4% in the previous May-versus-May annual comparison, according to the latest US Bureau of Labor Statistics data. The average price for regular motor gasoline was $3.15 per gallon in May; down 12.6% versus May 2024 and 0.7% lower than in April, according to the Bureau of Transportation Statistics (BTS). However, Israel’s attack on Iran raises the specter of sharply higher gasoline prices ahead of the summer driving season. Employment by gas stations continues to shrink, down 3.6% YoY in April, while average industry wages rose 2.5% over the same period to $18.48 per hour, BLS data show.