Gas Prices Hit $4 in Every State for First Time Since Iran War Began
For the first time since the start of the Iran conflict, every state in the U.S. now has an average gas price above $4 a gallon. The milestone comes just as millions of Americans gear up for Memorial Day weekend road trips.
According to AAA, the national average for a gallon of regular gas stood at $4.56 on Wednesday. California drivers face the steepest costs at $6.15 per gallon, while Georgia offers the lowest at $4.01.
Since the war disrupted oil shipments through the Strait of Hormuz, prices have surged more than $1.50 per gallon. Seven states now top $5, and even traditionally cheaper Gulf Coast states like Texas, Louisiana, and Mississippi are above $4.
A new GasBuddy survey shows 67% of Americans say rising pump prices are affecting their driving plans this summer. “Americans are going to pay billions more to get where they’re going this summer,” said Patrick De Haan, GasBuddy’s head of petroleum analysis. “Even after the Strait reopens, it could take a year or more for prices to fully recover.”
If the Strait remains closed through midsummer, De Haan warned the national average could surpass the record $5 per gallon seen in 2022.
Despite the pain at the pump, AAA expects a record 39.1 million people to drive over Memorial Day weekend.
California leads the nation in highest prices, followed by Washington at $5.79, Hawaii at $5.65, and Oregon at $5.35. Oregon voters this week rejected a six-cent gas tax increase passed by state lawmakers last year. Illinois is the only state east of the Rockies above $5.
On the low end, Georgia benefits from a gas tax holiday extended by Gov. Brian Kemp through June 2. Indiana also has a temporary tax suspension, dropping prices about 20 cents in a week. Mississippi, Texas, and Louisiana hover just above $4.
A federal gas tax holiday, backed by President Trump, would save the average driver only about $9 per month, according to the Penn Wharton Budget Model. State-level tax breaks offer bigger relief since state taxes and fees are generally higher than the federal 18.4-cent levy.