The U.S. gas pump price crossed a new threshold on Tuesday as the national average for regular gasoline rose above $4.00 a gallon for the first time since 2022, AAA said. The motor club put the figure at $4.02, noting it was more than a dollar higher than it was before the war began on Feb. 28 and calling the size of the increase the biggest monthly jump AAA has recorded.
AAA said the $4.02 figure reflects a national average, with motorists in some states having paid more than $4 a gallon for some time. The association said state-to-state differences stem from factors including nearby supply and variations in tax rates.
The surge in U.S. gasoline costs tracked the widening impact of the Iran war on global fuel markets, where the conflict has disrupted supply chains and prompted cuts from major oil producers in the Middle East. The Associated Press reported that both Brent crude and benchmark U.S. crude were trading above $100 per barrel, up from roughly $70 before the war began.
Gas prices are also rising abroad, the report said. In Paris, for example, the price was 2.34 euros per liter, which the report converted to about $2.68 a gallon, adding to fears that higher energy costs could spread beyond fuel into everyday household budgets.
Higher fuel costs could also ripple through the broader economy, economists and analysts said in the reporting. The Associated Press said that as drivers spend more on necessities such as gas and utility bills affected by fuel costs, some households may cut back elsewhere, potentially affecting spending patterns economywide and pushing other prices higher. The report also cited a recent AP-NORC poll that found 45% of U.S. adults said they were “extremely” or “very” concerned about affording gas in the next few months, up from 30% shortly after Trump won the 2024 presidential election.
The AP also pointed to cost pressures beyond gasoline. It said U.S. diesel, used by many freight and delivery trucks, averaged $5.45 a gallon, up from about $3.76 before the war began, and cited Patrick De Haan, head of petroleum analysis at GasBuddy, for the expectation that diesel costs would translate into more expensive bills for truckers and higher grocery prices. “It’s going to mean more expensive bills for truckers, tractors and trains that move the U.S. economy with diesel fuel. It’s going to mean consumers are likely greeted by rising grocery prices — and broadly speaking, a rise in U.S. inflation,” De Haan said.
Drivers said the higher prices are forcing changes in how they shop and fill their tanks. Kelly Gravlin, filling up at a Costco in Commerce Township northwest of Detroit, said the cost felt “outrageous” and argued it reflected a war the U.S. should not be in, adding that she viewed it as raising prices against a president’s promise to keep gas prices low. Alisa Howell of Charlotte, North Carolina, said she now buys only enough fuel to cover daily needs and criticized the decision to attack Iran as harming livelihoods.
Others described searching for smaller discounts where they can. Danielle Ervin of Novi, Michigan, said she stopped at a Speedway offering an 11-cent-per-gallon discount and described the overall price as “terrible,” saying she has cut back on other parts of her household budget. She also said she adjusted where she buys groceries, reduced spending on items such as clothing and sneakers, and scaled back entertainment costs at home.
Analysts warned gasoline prices could move higher if disruptions affecting crude flows persist. The report said attention remains on the Strait of Hormuz, where roughly one-fifth of the world’s oil once sailed through, and it cited the situation that most tanker movement in the key waterway remains at a halt. It also pointed to attacks on oil and gas facilities by Iran, Israel and the U.S. as worsening supply concerns.
Beyond oil prices and conflict risk, the AP said several factors influence what consumers pay at the pump, including seasonal patterns that can add upward pressure in the spring. It also noted that state-level pricing can vary widely, citing AAA data for Tuesday that showed California’s average near $5.89 per gallon of regular gas and Oklahoma’s around $3.27 per gallon. The reporting said that before Tuesday, AAA data indicated the national average stayed below $4 a gallon since mid-August of 2022, after reaching a peak just over $5 a gallon in June 2022 roughly four months after Russia’s invasion of Ukraine.
The report also highlighted the global nature of the energy system and said the U.S. is not immune even though it exports more oil than it imports overall. It said the U.S. still imports crude and refined products such as gasoline and that oil is traded globally, so disruptions and shocks can still reach domestic prices.