SerpApi.Org
Summer is sailing by for those of us in the US. We're past the July 4 vacation rush and pretty soon, the long Labor Day holiday will be on the horizon. It's peak travel time right now, and there's no easy way to say it – motorists are taking it on the chin with fuel prices that are once again climbing.
If there's any good news here, it's that we aren't quite at the peak that surpassed $4.60 a gallon for the national average back in June. But prices are officially above the $4.00 mark once again, and they are rising at a distressing rate. Here's the latest on prices for regular, premium, and diesel as of July 21.
Up 16 Cents In One Week
The latest AAA report lists regular fuel – generally 87 octane for most locations – at $4.019. That's the national average, and it officially crossed the $4.00 bar on July 20. That's a substantial jump of 16 cents from a week ago, when the national average was $3.859. If you live in the lower Midwest and Mid south, you're getting the better end of the spectrum. Places like Texas, Oklahoma, Louisana, and Kansas are averaging between $3.60 and $3.70 for a gallon of the cheap stuff. Indiana has the cheapest gas in the nation at $3.34 per gallon.
Curiously, next-door-neighbor Illinois is nearly a buck more at $4.16 per gallon. New England is largely around the national average, running between $4.00 and $4.15. The most expensive gas is still out west, with three states topping $5.00 per gallon. Washington is $5.03, Hawaii (admittedly WAY west) is at $5.43, and California leads them all at $5.51. Keep in mind, that's for basic regular octane.
For those who need premium fuel (generally 91 octane or higher), it's way worse. Indiana's average is $4.44, the cheapest you'll pay in the country. California checks in at $5.94, the most expensive in the US. The national average for premium sits at $4.90, nearly $1 more per gallon than regular. With many turbocharged vehicles requiring premium fuel, it's definitely a bitter pill to swallow.
And Then There's Diesel
But the hardest hit motorists by far are diesel drivers. AAA lists the average diesel price per gallon at a whopping $5.14 per gallon. That's 26 cents more than a week ago, and it's an increase that everyone will feel, even those who drive EVs. Diesel fuel literally drives the trucking industry, and higher fuel prices translate into higher costs for pretty much everything.
By comparison, the highest recorded diesel price in the US occurred back in June 2022 at $5.81 per gallon. As it stands now, diesel is 66 cents away from the record. Regular gas is $1.00 from its record of $5.01, also set in June 2022. Will this new fuel spike lead to new records? That likely depends on what Washington D.C. does next on its war with Iran.
Renewed strikes and a breakdown of the "memorandum of understanding" between the US and Iran are largely seen as the driving factor behind the most recent fuel spike. With chaos generally the order of the day regarding the Trump administration's actions in the Middle East, and with the Strait of Hormuz a vital passage for oil supplies, energy costs in the US likely won't subside until a permanent resolution finally takes hold. At this point, when that might happen is anyone's guess.
Source: AAA
