Average gas prices in the U.S. have jumped by nearly $1 per gallon and are nearing $4 per gallon, new AAA numbers show. (Photo by Joe Raedle/Getty Images)
Drivers across the United States find themselves digging deeper in their pockets as they fill their tanks. Gas prices continue their upward march and are nearing the $4 mark, according to new numbers from AAA.
People who rely on diesel have dealt with an even bigger sticker shock, with prices soaring to over $5 a gallon over the past week.
The last time gas prices were this high was in September 2023, the Associated Press reported.
What state's have the highest gas prices
What we know:
The average cost of a gallon of gas nationwide reached $3.88 on Thursday, after rising by nearly a dollar since this time last month, AAA’s report shows.
California drivers are being hit the hardest, shelling out $5.61 a gallon on average, its numbers indicate. Two other states — Washington and Hawaii — have crossed the $5/gallon threshold.
At the other end of the spectrum, the cheapest gas in the country can be found in Oklahoma and Kansas ($3.24 a gallon), followed by Iowa and Arkansas.
What we don't know:
Gas prices are still on their way up. It is not clear how high they will go or how long they will stay there. Trump administration officials are forecasting that they will start coming back down after the war with Iran ends.
Why gas prices are rising
Big picture view:
The recent upswing began in earnest on February 28 with the beginning of the war. Supply chain disruptions and cutbacks by major producers sent crude oil prices through the roof, the Associated Press reported.
The benchmark U.S. crude price, which stood at $65 before the war, topped triple digits several times in March, and finished Wednesday around $97. Meanwhile, the international standard, Brent crude, hit nearly $110 on Wednesday and is up more than 50% in the past month.
What they're saying:
The Treasury Department has no plans to intervene to ease the pressure on the oil futures market. "We’re absolutely not doing that," Treasury Secretary Mark Bessent said on FOX Business’ "Mornings with Maria" when asked about possible Treasury intervention.
Bessent noted the Trump Administration has sought to loosen supply constraints, particularly those caused by any temporary disruption in and around the Strait of Hormuz.
What's next:
Bessent told FOX Business that administration officials are seeking to "unsanction" approximately 130 million barrels of Russian oil cargoes already on the water, and may take similar steps with 140 million barrels of Iranian oil in floating storage.
If traffic along the straight were interrupted, he estimates that would affect 10 to 14 million barrels per day.
The White House also announced last week that it would release 172 million barrels from the nation’s strategic oil reserves over the next four months.
What they're saying:
At a speech in Michigan on Wednesday, Vice President JD Vance acknowledged the effect rising oil prices are having on Americans’ pocketbooks. He assured the audience prices would start coming back down once the conflict with Iran ends.
"We promise that when this conflict draws to a close, when this operation draws to close, we're going to see those energy prices come back down to reality, because that's what the president promised to do," he said.
Vance also pointed out that drivers in countries allied with the U.S. are seeing even greater hikes.
"So as much as we've got to focus on getting these gas prices down, the reality is, overseas they're feeling it far worse than we did because we've taken the steps to protect our energy economy," Vance continued.
On Sunday, Department of Energy Secretary Chris Wright predicted there was a "very good" chance that gas prices would return to normal before summer.
The Source: This article was based on information from the Associated Press, MarketWatch FOX News, and FOX Business. The story was reported from Orlando.