On Tuesday, Iranian state media suggested that oil facilities in the UAE could face attacks if the U.S. tries to circumvent Iran in the Strait of Hormuz.
WASHINGTON — The national average price of a gallon of regular gas rose by nearly 3 cents overnight as tensions flare in the Strait of Hormuz amid an increasingly tenuous ceasefire between the United States, Israel and Iran.
The national average for a gallon of regular gasoline was $4.483 on Tuesday. According to the American Automobile Association, that’s up from $4.457 on Monday.
Diesel prices increased by about 2 cents per gallon to $5.659, about 15 cents away from a record high. The cost of a gallon of diesel was $2.13 lower just one year ago than it was on Tuesday.
Which states have the most expensive gas?
California leads the country with the most expensive gas, according to AAA, where the average price for a gallon of regular fuel was $6.131 on Tuesday. Mono County, in rural California, has average gas prices of more than $7.
Just behind California were Washington ($5.705), Hawaii ($5.656), Oregon ($5.295) and Nevada ($5.197), all with gas prices above $5 per gallon.
Alaska joined the rest of its Pacific counterparts over the weekend. Regular gas prices in the Last Frontier stand at $5.067 per gallon.
The impact of the ceasefire and the Strait of Hormuz
The surging prices seemed to stabilize or even decrease for about two weeks, following a temporary ceasefire agreement between the U.S. and Iran that was indefinitely extended.
However, the Strait of Hormuz, a vital shipping route where roughly a fifth of the world’s oil passes, has effectively remained closed or extremely limited to passage due to dueling blockades by both countries. This volatility has greatly disrupted the global oil markets.
The main uncertainty for the global economy is where oil prices are heading because of the Iran war. Oil prices spurted higher early this week on worries that the war will keep the Strait of Hormuz closed for a long time. That would, in turn, keep oil tankers bottled up in the Persian Gulf rather than delivering crude to customers worldwide.
On Tuesday, Iranian state media implied that oil facilities in the United Arab Emirates could face attacks if the United States tries to circumvent Iran in the Strait of Hormuz.
“The incident resulted from U.S. military adventurism to create an illegal passage,” the official said about the oil facility attack, apparently referring to U.S. President Donald Trump‘s latest efforts to reopen the Strait of Hormuz, a critical waterway for global energy.
Rising prices in the Great Lakes Region
Hovering just under $5 per gallon is most of the Great Lakes region. According to gas price tracker GasBuddy, states like Illinois, Ohio, Michigan and Indiana have seen the fastest increase in fuel prices in the past few weeks.
Patrick De Haan, a petroleum analyst at GasBuddy, said “refinery outages” in the Midwest have made increases more severe. However, De Haan notes that these issues have improved, which could soon offset prices.
Oklahoma reclaims distinction as state with lowest gas prices
Oklahoma has retaken the lead as the state with the lowest gas prices at $3.897.
For a couple of days, Georgia had the lowest average gas prices. In March, Georgia Gov. Brian Kemp suspended the state’s 33-cent excise gas tax and a 37-cent diesel tax in response to rising prices amid the War in Iran. The 60-day tax suspension is scheduled to last until May 19.
On Tuesday, AAA reported Georgia had the second-lowest average gas prices at $3.91 per gallon.
Taxes are only one factor that influences how much the price of gas varies by state. While California leads the country in gas taxes and prices, the state with the third-highest gas prices, Hawaii, has some of the country’s lowest gas taxes.
Distance from refineries, the volume of gas the area goes through and alternate fuel options nearby also factor into the price of gas.
Highest average gas prices by state:
- California: $6.131
- Washington: $5.705
- Hawaii: $5.656
- Oregon: $5.295
- Nevada: $5.197
Lowest average gas prices by state, as of Friday:
- Oklahoma: $3.897
- Georgia: $3.910
- Mississippi: 3.920
- Louisiana: $3.923
- Arkansas: $3.955
Highest average gas prices
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.
The Associated Press contributed to some of the reporting in this article.