Memorial Day Gas Prices Hit Four-Year High $4.564; IEA Chief Birol Warns of Summer 'Red Zone'

The American Automobile Association reported Thursday that the national average for a gallon of regular gasoline reached $4.564 — a new 2026 high and the highest Memorial Day weekend price in four years. The average climbed 3 cents over the past week and stands $1.38 above the same date a year ago.

AAA noted that current prices are close to what drivers paid four years ago, when the national average on Memorial Day 2022 was $4.61. “With gasoline demand on the rise and the prolonged closure of the Strait of Hormuz, pump prices are likely to remain elevated as the summer travel season gets underway,” the AAA bulletin said. Over the past month, the average has climbed more than 54 cents from $4.022 to $4.564.

Regional dispersion remains wide. California leads the high end at $6.143 per gallon. Washington follows at $5.77, Hawaii at $5.64, Nevada at $5.24, with Alaska, Illinois, Oregon, and Hawaii rounding out the six states currently averaging above $5 per gallon. The cheapest pump markets remain Oklahoma at $3.94, Mississippi at $3.98, and Louisiana at $4.00. Only Oklahoma and Mississippi average below $4 per gallon nationwide.

International Energy Agency Executive Director Fatih Birol warned Thursday that the global oil market will reach a “red zone” this summer if the Strait of Hormuz does not reopen. “Global oil stockpiles will deplete as demand picks up during summer travel,” Birol said. The warning aligns with Saudi Aramco CEO Amin Nasser's prior assessment from the company's Q1 earnings call that market normalization is pushed to 2027 if Hormuz reopening is delayed past mid-June.

Year-over-year, gasoline prices are up 43.6% from $3.14 on May 12, 2025. Every U.S. state has seen double-digit price increases over the past twelve months. The largest year-over-year jumps have come in Ohio (+57.2%), New Hampshire (+56.0%), and Michigan (+53.8%). Even states with the most modest increases — California, Hawaii, Nevada — saw rises of 25-33%.

Diesel-driven inflation has spread internationally as well. Strikes and protests broke out in Nairobi earlier this week as diesel prices jumped 50% in Kenya. Trump told CBS News this week he wants to suspend the federal 18.4-cent-per-gallon gasoline tax “for a period of time,” adding that once prices fall he would “let it phase back in.”

Continuing coverage: Gas Prices by State · Oil Prices · Geopolitics.