On Monday, the average price of a regular gallon of gas in the United States was $4.52, according to AAA.
WASHINGTON — The national average price of a gallon of regular gas dropped by nearly three cents over the weekend, falling despite lingering uncertainty surrounding the end of war talks between the United States and Iran.
On Monday, the average price of a regular gallon of gas in the United States was $4.52, according to the American Automobile Association. It’s a decrease from Friday’s price of $4.546, but more than six cents higher than the cost of gas at this time last week. At this time last month, gas prices were about 38 cents lower.
Diesel costs dropped by two cents since Friday for a national average of $5.636.
Oil market optimism is unraveled by stalled talks between the U.S. and Iran
President Donald Trump rejected a response by Iran to a proposal end the war over the weekend, calling the conditions “TOTALLY UNACCEPTABLE!,” on social media.
The back-and-forth comes as the war and the closure of the Strait of Hormuz continue to generate uncertainty in the global economy.
According to Iranian state television, among Tehran’s chief demands was “full Iranian sovereignty over the Strait of Hormuz.”
Petroleum analyst Patrick De Haan of price-tracking site GasBuddy argued that whatever optimism the oil markets had in an end to the war has been “unraveled” by the latest diplomatic exchange between the United States and Iran.
“As a result, many states could see another round of price cycling in the days ahead, potentially sending the national average toward the $4.65-per-gallon mark if oil continues climbing,” De Haan said on Monday.
U.S. Energy Secretary Chris Wright told NBC News’ Kristen Welker he believed gas prices would go down once the Strait of Hormuz reopened to trade traffic. Pressed by Welker on whether gas would fall below $3 a gallon, Wright refused to make a specific projection.
“I’m just avoiding price predictions,” Wright told Welker.
Trump is scheduled to head to China to meet with Xi Jinping later this week, where American advisers hope the Chinese president could persuade Iran to reopen the Strait of Hormuz.
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 $6.158 on Monday. 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 ($5.762), Hawaii ($5.650), Oregon ($5.320) and Alaska ($5.264).
Could eliminating gas taxes help?
Wright has signaled that the Trump administration was open to lowering prices by eliminating the gas tax.
“We’re open to all ideas to lower prices for American consumers and American businesses,” Wright said.
Both Indiana and Georgia have opted to suspend their gas taxes to offset rising prices.
Last Wednesday, Indiana Gov. Mike Braun said he would suspend the Hoosier State’s gas tax, including a 36-cent per gallon excise tax, for 30 days.
According to AAA, Indiana’s average gas price dropped by 46 cents since Braun’s announcement.
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.
Earlier this month, Georgia was briefly the state with the cheapest gas prices. Although Oklahoma has regained that distinction. The average cost of a gallon of regular gas in Oklahoma was $3.946 on Monday.
In both Indiana and Georgia, gas taxes go toward repairing highways and roads.
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: $6.158
- Washington: $5.762
- Hawaii: $5.650
- Oregon: $5.320
- Alaska: $5.264
Lowest average gas prices by state, as of Friday:
- Oklahoma: $3.946
- Mississippi: $3.984
- Arkansas: $3.998
- Louisiana: $4.005
- Texas: $4.034
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.