Gas Prices Cross $4 for the First Time Since 2022—See What You’ll Pay at the Pump in Your State

Chris Wilmerding profile photo

Chris Wilmerding

President
Thayer Partners, LLC
8309 Stenton Ave Wyndmoor, PA 19038
David Beckwith profile photo

David Beckwith

Chief Investment Officer
8309 Stenton Ave Wyndmoor, PA 19038
Joe Ciliberti profile photo

Joe Ciliberti

Lead Wealth Manager
8309 Stenton Ave Wyndmoor, PA 19038
Deborah Deckman profile photo

Deborah Deckman

Partner, Wealth Manager
8309 Stenton Ave Wyndmoor, PA 19038

Key Takeaways

  • The national average gas price has reached $4.02—its highest level in three and a half years—after rising more than $1 this month.
  • The March surge marks the fastest 30-day run-up in gas prices in more than five years, based on AAA data.
  • Prices vary widely across the country, with every state averaging over $3.25—and three topping $5 per gallon.

Gas Prices Top $4 for the First Time Since 2022

Oil prices remain elevated as the Iran conflict drags on, continuing to put upward pressure on fuel costs. That sustained strength in crude is pushing gasoline prices to new highs for drivers across the country.

The national average for regular gasoline edged up another 3 cents Tuesday to $4.02 per gallon, the highest level since September 2022. Prices are now up more than a dollar since March 1, when the national average was $2.98.

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Investopedia / Sabrina Karl

Why This Matters to You

If the Iran conflict continues, oil prices could keep climbing, pushing gas prices even higher in the coming weeks. PNC Economics forecasts an increase of about $1 per gallon for each month the disruption persists.

Based on AAA data, the March surge marks the fastest 30-day increase in gas prices in more than five years, underscoring how quickly costs have climbed this month.

Before the run-up, the average had held below $3 for three months—the first sustained stretch in the $2 range since 2021.

Iran War Sends U.S. Gas Prices Surging

The Last Time Gas Hit $5

The national average briefly topped $5 per gallon in June 2022 after Russia’s invasion of Ukraine disrupted global oil supplies. Demand had surged after the pandemic, making the price spike even more severe.

Gas Prices Over $3.25 in Every State, With 3 Above $5

While average gas prices have surged everywhere, state-level prices vary widely.

Drivers in Oklahoma are seeing the cheapest price at the pump—$3.27, according to AAA—with the next cheapest states being Iowa, Kansas, Nebraska, and South Dakota. All 50 states have averaged more than $3 per gallon since March 11.

Average Gas Prices by State—March 31, 2026

At the high end, three states now average more than $5 per gallon: California tops the list at $5.89, followed by Hawaii and Washington. Nine more states—Oregon, Nevada, Arizona, Alaska, Idaho, Illinois, Utah, Florida, and Maryland—plus Washington, D.C., currently average above $4.

The result is a $2.62 difference per gallon between the cheapest and most expensive states.

Why Gas Prices Vary So Widely by State

Gas prices can look very different depending on where you live—and the recent surge tied to the Iran conflict has made those gaps stand out. Those differences reflect how fuel is taxed, produced, and delivered across the country.

Fuel taxes are one of the biggest drivers of variation. According to the U.S. Energy Information Administration, federal and state taxes accounted for more than 14% of the average price per gallon in 2023. Because some states levy significantly higher gasoline taxes and fees than others, those differences show up clearly at the pump.

Geography and infrastructure also play a role. States closer to major refineries or pipeline networks often benefit from lower transportation costs, while more isolated markets can face supply constraints that push prices higher.

In some cases, environmental rules add to the gap. California, for example, requires a cleaner-burning gasoline blend that relatively few refineries produce, contributing to its persistently higher prices.

When oil prices rise sharply, those built-in cost differences can amplify the impact in already expensive states. And even when crude pulls back, those underlying factors remain—helping explain why price gaps between states can stay wide.

This Investopedia article was legally licensed by AdvisorStream.


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Chris Wilmerding profile photo

Chris Wilmerding

President
Thayer Partners, LLC
8309 Stenton Ave Wyndmoor, PA 19038
David Beckwith profile photo

David Beckwith

Chief Investment Officer
8309 Stenton Ave Wyndmoor, PA 19038
Joe Ciliberti profile photo

Joe Ciliberti

Lead Wealth Manager
8309 Stenton Ave Wyndmoor, PA 19038
Deborah Deckman profile photo

Deborah Deckman

Partner, Wealth Manager
8309 Stenton Ave Wyndmoor, PA 19038