President Trump claims gas prices will ‘go down’ after Iran war
President Trump released an update on gasoline prices, predicting a significant drop following the Iran war.
- Analysts predict that average U.S. gasoline prices could soon reach a record $4.80 per gallon.
- The price increase is linked to geopolitical tensions, including the war between the United States and Iran, and historically tight oil inventories.
- Currently, California’s average gas price is $6.14 per gallon, the highest in the nation.
The average price of a gallon of gasoline in the United States could soon reach $4.80 a gallon, according to one fuel industry analyst.
“Breaking news: GasBuddy predicts the most expensive summer at the pump in years amid the Straits closure…likely to reach $5 per gallon, setting a new record of $4.80 per gallon and surpassing the summer 2022 average of $4.43 if the Straits remain closed,” Patrick de Haan, head of petroleum analysis at GasBuddy, wrote in an X post.
The prediction comes as the average price of gasoline rose to $4.55 per gallon on May 20, from an average of $4.04 a month earlier on April 20, according to the AAA Auto Club. De Haan said in a blog post that he expects gas prices to continue rising in the coming weeks as the Iran war continues.
“The national average price of gasoline remained low for much of last week after surging earlier in the week as oil prices softened on hopes that diplomatic progress between the United States and Iran would ease supply concerns,” De Haan wrote. “However, that optimism faded after President Trump’s meeting with China’s Xi Jinping failed to yield a solution to the Iran issue, while fresh warnings against Iran helped push oil prices back up.”
De Haan added: “Global oil inventories continue to trend toward historically challenging levels, and markets remain highly sensitive to geopolitical developments and potential supply disruptions.”
“As a result, gasoline and diesel prices are likely to remain volatile, and retail fuel prices could begin to rise again in the coming weeks due to sustained increases in oil prices as Memorial Day approaches.”
How are gasoline prices determined?
“Gasoline prices reflect the costs of the entire fuel supply chain, from crude oil production to refining, distribution and retail,” the American Petroleum Institute, which works with the natural gas and oil industries, said in a post on its website.
“The biggest factor is the price of crude oil traded on global markets,” the group said. “Refining costs, distribution and marketing costs, and federal and state taxes also impact the price you ultimately pay at the pump.”
According to the U.S. Energy Information Administration, the price you see at the pump consists of:
- Oil price: 51%
- Refining cost: 20%
- Federal and state taxes: 18%
- Distribution and marketing: 20%
In the case of diesel prices, the authorities classify the composition of published prices as follows:
- Oil price: 41%
- Distribution and marketing: 24%
- Refining cost: 18%
- Federal and state taxes: 17%
Which states have the highest gas prices?
California has the highest gas prices in the nation, with California drivers paying an average of $6.14 as of May 20, according to AAA. That’s up from California’s average price of $5.83 per gallon a month earlier, on April 20.
Here are the five states with the highest gas prices in the nation:
1. California
- Average gas price on May 20th: $6.14
- Average gas price on April 20th: $5.83
- Price difference: 31 cents
2. Hawaii
- Average gas price on May 20th: $5.64
- Average gas price on April 20th: $5.67
- Price difference: -3 cents
3. Washington
- Average gas price on May 20th: $5.78
- Average gas price on April 20th: $5.38
- Price difference: 40 cents
4. Oregon
- Average gas price on May 20th: $5.35
- Average gas price on April 20th: $4.98
- Price difference: 37 cents
5. Nevada
- Average gas price on May 20th: $5.27
- Average gas price on April 20th: $4.93
- Price difference: 34 cents
