The United States has plenty of oil. Still, gasoline prices continue to rise.
Although the United States is nearly self-sufficient in oil, gas prices remain affected by Iran’s stranglehold on oil shipments in the Strait of Hormuz.
- Gasoline prices are rising in all 50 states, with the Great Lakes region seeing the biggest spikes.
- According to recent data, the national average price for a gallon of gasoline has increased to $4.46.
- Gasoline in California is currently the most expensive in the nation, while Oklahoma is the cheapest.
The average price of a gallon of gasoline in the United States is rising in all 50 states, according to a prominent fuel industry analyst.
“Gasoline prices rose in every state last week, but the biggest and fastest increases were concentrated in the Great Lakes, with states like Michigan, Indiana, Ohio and Illinois seeing sharp spikes, while Wisconsin saw a more modest increase,” Patrick de Haan, GasBuddy’s head of petroleum analysis, said in a blog post.
“At the same time, diesel prices in parts of the region hit new records, reaching levels of $6 per gallon in some areas,” De Haan continued.
The comments came as the average price of gasoline rose from an average of $4.11 a week ago on April 27 to $4.46 per gallon on May 4, according to the AAA Automobile Club.
DeHaan said gas prices have fluctuated so much because “the market is also digesting a wave of new developments that could restore some supply, such as OPEC+’s production increase in June and President Trump’s outline of a plan to free stranded ships.”
“However, with so many variables at play, the outlook remains very fluid, and while some localized easing may emerge, broader price movements are likely to continue in the short term,” he wrote.
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%
Where are gas prices highest in the United States?
California has the highest gas prices in the nation, with California drivers paying an average of $6.11 as of May 4, according to AAA. That’s up from California’s average price of $5.95 per gallon a week earlier, on April 27.
Here are the top five states with the highest gas prices in the nation:
1. California
- Average gas price on May 4: $6.11
- Average gas price on April 27: $5.95
- Price difference: 16 cents
2. Hawaii
- Average gas price on May 4: $5.64
- Average gas price on April 27: $5.66
- Price difference: -2 cents
3. Washington
- Average gas price on May 4: $5.67
- Average gas price on April 27: $5.48
- Price difference: 19 cents
4. Oregon
- Average gas price on May 4th: $5.25
- Average gas price on April 27: $5.07
- Price difference: 18 cents
5. Nevada
- Average gas price on May 4: $5.18
- Average gas price on April 27: $5.03
- Price difference: 15 cents
Which state has the lowest gas prices?
Oklahoma has the lowest gas prices in the nation, with Oklahoma drivers paying an average of $3.89 as of May 4, according to AAA. This is up from the average price in Oklahoma of $3.50 per gallon a week earlier, on April 27th.
Here are the top five states with the highest gas prices in the nation:
1. Oklahoma
- Average gas price on May 4: $3.89
- Average gas price on April 27: $3.50
- Price difference: 39 cents
2. Kansas
- Average gas price on May 4: $3.96
- Average gas price on April 27: $3.53
- Price difference: 43 cents
3. Arkansas
- Average gas price on May 4: $3.90
- Average gas price on April 27: $3.60
- Price difference: 30 cents
4. Georgia
- Average gas price on May 4: $3.86
- Average gas price on April 27: $3.62
- Price difference: 24 cents
5. North Dakota
- Average gas price on May 4: $4.00
- Average gas price on April 27: $3.65
- Price difference: 35 cents
