Gas prices continue to climb across the United States, with drivers in a growing number of states paying more than $4 per gallon, according to AAA.
The national average reached $4.08 per gallon, up sharply from $3.00 just a month ago. It marks the first time since 2022 that the nationwide average has crossed the $4 threshold.
Price increases are being driven by volatility in global energy markets, particularly following disruptions tied to the war with Iran and reduced shipping through the Strait of Hormuz.
Oil prices surged Thursday after President Donald Trump warned in a speech that the U.S. could strike Iran "extremely hard" in the coming weeks, adding further uncertainty to strained markets.
Gas prices in three states — California, Hawaii, and Washington — have now exceeded $5 per gallon. In total, prices in 18 states are above $4, while several others are approaching that level.
Patrick De Haan, head of petroleum analysis at GasBuddy, said the spike will ripple through the broader economy.
"It's going to mean more expensive bills for truckers, tractors, and trains that move the U.S. economy," De Haan said. "Consumers are likely to see rising grocery prices — and broadly speaking, higher inflation."
Retail gasoline prices are rising as stations adjust to higher wholesale costs for fuel shipments. Taxes also play a significant role, accounting for nearly 20% of the price, while retailers typically retain about 10% to cover operating costs such as transportation and labor.
Prices vary widely by region due to differences in taxes, supply chains, and local competition. California, for example, had about 71 cents per gallon in state taxes and fees last year, compared with roughly 9 cents in Alaska.
Other factors — including proximity to refineries, station volume, and nearby competition — also influence pricing. Stations often adjust prices strategically to attract drivers, sometimes using lower fuel prices to boost in-store sales.
"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," said Neal Walters, an energy-focused partner at Kearney, a consulting firm.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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