SerpApi.Org
KEY TAKEAWAYS
Gas prices returned to $4 today after falling to $3.79 on July 7, their lowest level since mid-March.
The rebound follows a month of relief from May’s $4.56 peak, as rising oil prices push pump costs higher again.
Prices differ by more than $2 per gallon between Indiana, the cheapest state, and Hawaii and California, the most expensive.
Gas Prices Reverse Course After Falling to $3.79
The national average for regular gasoline reached $4.00 a gallon today, according to AAA. That marks a 21-cent climb from July 7, when prices fell to their lowest level since mid-March.
The rebound comes as oil prices have risen again, putting renewed pressure on pump prices across the country.
Gas Prices Have Swung Sharply Since the Start of 2026
Gas prices surged to $4.56 in May after averaging less than $3 before the Iran conflict began. They later fell to $3.79 before turning higher again.
Even after the latest increase, the national average remains 56 cents below its May peak.
Why This Matters
Gas prices have climbed more than 20 cents in under two weeks, showing how quickly recent savings at the pump can fade. Checking state averages can help you plan where to fill up near a border or during a multistate trip.
23 States Are Now at $4 or More, Including 3 Above $5
The average price per gallon has retreated from its spring high, but nearly half the country is still paying at least $4 a gallon. The lowest averages remain concentrated largely across the South and Midwest.
Prices at the pump are cheapest in Indiana, averaging $3.35 per gallon, with Mississippi, Texas, Louisiana, and Oklahoma below $3.60.
Hawaii continues to be the most expensive state, at $5.50 a gallon, with California and Washington also still in $5 territory. The gap between Indiana, today’s cheapest state, and Hawaii is currently $2.15 per gallon.
Average Gas Prices by State—July 20, 2026
Why Gas Prices Move Quickly—and Vary So Widely by State
Gas prices can look very different depending on where you live or drive through, and today’s state averages show those gaps remain wide as prices climb again nationwide. The differences reflect how fuel is taxed, produced, delivered, and priced across the country.
Retail gas prices also tend to rise faster than they fall—a pattern economists sometimes describe as “rockets and feathers.” When crude oil prices climb, gas prices can shoot up quickly as stations pass along higher wholesale costs. But when crude prices fall, Stanford economist Neale Mahoney has said prices at the pump can “float down like a feather,” partly because drivers tend to pay less attention and shop around less when prices are declining. That gives stations less pressure to compete by cutting prices.
Why Geopolitical Shocks Can Move Gas Prices Fast
Surging oil prices can affect the cost of gas quickly. The national average briefly topped $5 a gallon in June 2022 after Russia’s invasion of Ukraine disrupted global supplies, underscoring how geopolitical tensions can rapidly raise costs at the pump.
Fuel taxes are another major driver. The federal gas tax is the same nationwide, but state taxes and fees vary significantly, and those differences show up clearly at the pump. States with higher fuel taxes tend to have a higher floor for gas prices, even when oil prices are moving lower.
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 or higher shipping costs that push prices up.
Environmental rules can widen the gap, too. California, for example, requires a cleaner-burning gasoline blend that relatively few refineries produce, contributing to its persistently higher prices. That helps explain why California is often among the most expensive states.
Read the original article on Investopedia
