July was the hottest month in all of recorded human history. The heat wave is only partly responsible for the high gas prices. Price spikes were due to three main factors: heat-related refinery outages, strong summer demand for gasoline, and gasoline inventories that were at their lowest July level since 2015.
Strong demand and low inventories are classic high-gas-price triggers, but heat-related outages are less common. AAA, which tracks gas prices, said the extreme heat we’re all experiencing this summer meant some U.S. refineries, especially those near the Gulf of Mexico, had to cut back. Due to the high heat, the U.S. refined around 500,000 fewer barrels a day than usual.