Fuel Prices Explode Across America as National Average Nears Record High

WorldBusiness & Finance
21 May 2026 • 8:41 PM MYT
Econostrum
Econostrum

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The national average price for regular gasoline in the United States rose to $4.55 per gallon on Wednesday, nearly matching the highest level recorded during President Donald Trump’s second term. The increase follows months of disruption to global oil markets linked to the ongoing conflict in the Middle East.

Drivers across the country are now paying sharply higher prices compared with late February, before military strikes on Iran triggered instability around the Strait of Hormuz, one of the world’s most significant oil shipping routes.

The latest figures from the American Automobile Association (AAA) show that no U.S. state has avoided the impact of rising fuel costs. While prices vary considerably from region to region, the broader trend reflects sustained pressure on global crude oil supply.

According to reports, the nationwide average has climbed by nearly $1.60 per gallon since late February. Analysts say the increase is closely tied to interruptions in oil production and shipping across the Middle East.

California and Western States Report the Highest Fuel Costs

California recorded the highest statewide average gas price in the country on Wednesday, with drivers paying $6.14 per gallon for regular gasoline, according to AAA data. In late February, the state average was closer to $4.45 per gallon.

Five additional states (Hawaii, Illinois, Nevada, Oregon, and Washington) also reported average gasoline prices above $5 per gallon. Georgia posted the lowest statewide average at $4.01 per gallon, though that figure remains significantly above the approximately $2.75 average reported there before the conflict escalated.

The increase in fuel costs has affected consumers nationwide as oil prices continue responding to instability around the Strait of Hormuz. The narrow waterway connects the Persian Gulf to the Gulf of Oman and carries roughly one-fifth of the world’s oil and liquefied natural gas supply under normal conditions.

According to Trading Economics data, Brent crude oil reached $109.32 per barrel on Wednesday. Although slightly lower than the previous trading day, the price remains far above the roughly $73 per barrel average reported in late February.

Patrick De Haan, head of petroleum analysis at GasBuddy, wrote on X that Americans are now spending hundreds of millions of dollars more on gasoline each day compared with pre-war fuel costs. He estimated that cumulative additional gasoline spending since the Strait’s disruption has reached around $33 billion.

Washington Weighs Fuel Relief Measures as Uncertainty Continues

Federal lawmakers are considering measures intended to ease pressure on drivers facing higher prices at the pump. Last week, House Republicans passed legislation that would allow year-round nationwide sales of E15 gasoline, also known as Unleaded 88.

The fuel blend contains 15 percent ethanol and is generally sold at a lower price than E10 gasoline. According to a 2024 estimate from the Environmental Protection Agency, E15 was approximately $0.25 cheaper per gallon than E10. The Renewable Fuels Association has also stated that E15 prices are often 5 to 10 percent lower.

The bill’s future remains uncertain because it would require60 votes in the Senate to overcome a filibuster before reaching President Trump’s desk.

Meanwhile, Trump offered mixed public statements this week regarding the conflict with Iran. On Tuesday, he said a deal with Tehran could happen quickly and predicted that oil prices would “plummet.” Hours later, he also warned that further U.S. strikes remained possible if negotiations failed. Energy analysts widely agree that fuel prices are unlikely to decline substantially unless shipping through the Strait of Hormuz returns to normal operations.

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