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California tops the list for the highest gas prices in the United States, with an average of $6.01 per gallon. Trailing behind are Hawaii and Washington, where drivers are paying $5.643 and $5.570 per gallon, respectively.
WASHINGTON — As global tensions continue to affect oil markets, the average cost of gasoline in the U.S. sees a notable rise, increasing around seven cents on Thursday alone. The West Coast is feeling the pinch most acutely, with California’s average surpassing the $6 mark.
Data from AAA indicates that the national average reached $4.300 on Thursday, marking an increase of approximately 27 cents compared to the previous week. This figure represents the highest level in almost four years.
The recent surge in prices is largely attributed to ongoing worries about interruptions in the global oil supply, particularly concerning the instability near the Strait of Hormuz, a crucial passageway responsible for transporting about 20% of the world’s oil.
This upward trend contrasts with the situation earlier in April, when prices saw a temporary decline amidst hopes for reduced overseas tensions.
California leads the nation in gas prices at $6.01 per gallon, followed by Hawaii at $5.643 and Washington at $5.570. Rural Mono County, Calif., near the Nevada border and Yosemite National Park, had average gas prices just under $7 on Thursday.
More states are now nearing or surpassing the $5 mark, including Oregon ($5.152) and Nevada ($5.129), as higher costs spread beyond the West Coast. Meanwhile, drivers in parts of the South and Great Plains are still seeing comparatively lower prices. The states with the lowest average prices are Oklahoma ($3.708), Kansas ($3.756) and Georgia ($3.757).
Diesel also rose nationally on Thursday, spiking by about three cents for a nationwide average of $5.496.
Experts say prices could continue to fluctuate in the coming days, depending on developments in global oil supply and geopolitical tensions.
Why are prices going up?
The increase comes as negotiations appear to have stalled between the U.S. and Iran.
Trump last week indefinitely extended the ceasefire the U.S. and Iran agreed to on April 7, which has largely halted fighting. But a permanent settlement remains elusive in the war that has killed thousands of people.
But the president later in the week recalled diplomats he planned to sent to Pakistan for continued negotiations, citing a lack of good faith from Iran.
“If they want, we can talk, but we’re not sending people,” Trump told Fox News on Sunday. He said earlier on social media: “All they have to do is call!!!”
Instead, Iranian officials met with Russian leaders, bringing together two countries that the U.S. is adversarial towards.
Iranian Foreign Minister Abbas Araghchi met with Russian President Vladimir Putin on Monday in St. Petersburg, Russian state news agency Tass said. Putin praised the Iranian people as “bravely and heroically fighting for their sovereignty,” and said Russia would do everything possible to bring peace to the Middle East, Tass reported.
Araghchi said before the meeting in a video interview posted by Iran’s state-run IRNA news agency that it was “a good opportunity for us to consult with our Russian friends about the developments that have occurred in relation to the war during this period and what is happening now.”
Why might prices differ from one gas station to the next?
Although the national average passed $4 a gallon, the price that drivers pay varies widely by state, city and station.
Taxes alone can create large gaps. California’s gas taxes and fees totaled about 71 cents per gallon last year, compared with roughly 9 cents in Alaska.
Distance from refineries, the type of retailer, the volume the location goes through, and whether there are other fuel options nearby also play a role.
Gas stations near competitors may choose to price gasoline competitively on large outdoor signs to attract drivers, hoping they’ll come inside and buy higher-margin items, said Neal Walters, a partner focused on energy at the global management consulting firm Kearney.
“It’s one of the only retail locations where you don’t have to go into the store to find out what you’re paying,” Walters said.
Why are gas and diesel prices elevated?
Prices began to rise sharply after the U.S. and Israeli attack on Iran on Feb. 28, which led to escalating tensions and military conflicts across the Middle East, where a large majority of global oil is sourced and distributed.
While not the sole factor for rising costs, volatile trade routes and other uncertainties in production have led to higher prices of crude oil, which is refined to make diesel, gasoline and jet fuel.
Brent crude oil topped $125 on Thursday, driving higher fuel costs. Rising diesel and jet fuel prices are also expected to increase transportation and air travel costs, potentially pushing up prices for goods across supply chains.
Highest average gas prices ever?
The record for the highest average price of a regular gallon of gas was set on June 14, 2022, with a national average of just over $5 during the early months of Russia’s invasion of Ukraine. The highest recorded average gallon of diesel, $5.816, came just five days later on June 19, 2022.