Still, the national average cost of a gallon of gas hovered over $4.50.
WASHINGTON — The national average price of a gallon of regular gas dropped by one cent overnight, marking the first decrease in price since April.
On Friday, the average price of a regular gallon of gas in the United States was $4.546, according to the American Automobile Association. It’s a decrease from Thursday’s price of $4.558, but still 15 cents higher than the cost of gas at this time last week.
Diesel costs have also dropped by one cent since Thursday for a national average of $5.663. However, the price of diesel has gone up by six cents compared with this time last week.
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 $6.160 on Friday. Mono County, in rural California, has average gas prices of more than $7.
Just behind California were the rest of the Pacific Coast states, Washington ($5.764), Hawaii ($5.652), Oregon ($5.335) and Alaska ($5.249).
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 Thursday, President Donald Trump said the ceasefire in the region was holding despite some violence.
U.S. Central Command said in a social media post that U.S. forces intercepted “unprovoked Iranian attacks” and responded with self-defense strikes.
The U.S. military said no ships were hit. It said it doesn’t seek escalation but “remains positioned and ready to protect American forces.”
Kentucky freezes gas tax in response to climbing prices
On Tuesday, Kentucky Gov. Andy Beshear signed an executive order that would freeze his state’s gas tax, eliminating a hike that was scheduled to kick in this summer. Like the rest of the United States, the Bluegrass State has seen its prices rise since the start of the Iran war.
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.
In both Kentucky and Georgia, gas taxes go toward funds to repair highways and roads.
Earlier this week, Georgia had the lowest gas prices in the country. However, on Friday, AAA reported Georgia had the seventh-lowest average at $4.093 per gallon.
Since Tuesday, Oklahoma has had the lowest gas prices in the country. With an average price of $3.984, the Sooner State is the only place in the United States with average prices below $4.
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: $6.160
- Washington: $5.764
- Hawaii: $5.652
- Oregon: $5.335
- Alaska: $5.249
Lowest average gas prices by state, as of Friday:
- Oklahoma: $3.984
- Mississippi: $4.007
- Arkansas: $4.019
- Louisiana: $4.028
- Texas: $4.084
Highest average gas prices ever?
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.