AAA reported Monday, May 4, 2026, that the U.S. national average for a gallon of regular unleaded gasoline reached $4.457, up roughly six cents from Friday’s $4.392 and approximately 31 cents higher than two weeks ago. The reading is the highest national average since late July 2022, and reflects the continued pass-through of crude oil’s rally amid the ongoing Iran-Hormuz conflict to retail pump prices.
Tennessee’s state average crossed $4.00 per gallon for the first time since July 2022. The state average reached $4.03, up 18 cents from a month ago and $1.31 higher than a year ago. “We saw a 26-cent jump in our state gas price average over last week,” said Megan Cooper, AAA spokeswoman for The Auto Club Group. “Another surge in crude oil prices due to the ongoing Iranian conflict and closure of the Strait of Hormuz is placing additional upward pressure on pump prices. It’s likely that drivers will continue to see increases in pump prices again this week.”
Regional variation remains extreme. California is now averaging above $6.11 per gallon — well into territory that historically has prompted state-level political intervention. The Midwest spike that began with the Indiana refinery issue continues to ripple through neighboring states; Michigan averages $4.86, Illinois (anchored by Chicago) sits near $5.10, and Ohio has crossed $4.40. The lowest-priced states — Mississippi, Oklahoma, Louisiana — remain below $4.00 but are climbing fast.
The national average is now $1.29 higher than it was at this time last year. Gas prices reflect a multi-day lag from crude price changes, which means Monday’s WTI rally to $105.09 and Brent surge to $114.44 will continue to push pump prices higher into next week even if the Hormuz situation stabilizes. EIA data released last week showed gasoline demand increased to 9.10 million barrels per day; total domestic gasoline supply decreased to 222.3 million barrels; gasoline production fell to an average of 9.8 million barrels per day — the combination of rising demand and falling production is the textbook recipe for higher retail prices.
Diesel prices have rallied even harder than gasoline. The U.S. diesel average sits at $6.118 per gallon, with rural agricultural states — whose economies depend heavily on diesel for trucking, farming, and rail — particularly exposed. Heating oil futures rallied 3% Monday to $4.24 per gallon, just below the all-time record. The diesel-to-gasoline price differential is now the widest since 2022, signaling tight middle distillate supply globally.
EIA reports crude inventories decreased by 6.2 million barrels last week from the prior week. At 459.5 million barrels, U.S. crude inventories are about 1% above the five-year average for this time of year — a comfortable buffer historically, but rapidly shrinking as refiners run hard to capture record gasoline crack spreads. The EIA’s next weekly inventory report is due Wednesday, May 6. For continuing coverage, see our U.S. gas prices dashboard and live oil prices.