The average price of a gallon of gas in the United States could soon reach $4.50 a gallon, a leading fuel industry analyst said.
“Oh yes, be careful… the national average could quickly reach $4.50/gallon,” Patrick de Haan, head of petroleum analysis at GasBuddy, wrote in an X post.
The forecast comes as the average price of gas rose to $4.23 per gallon on Wednesday, April 29, from an average of $4.02 a week earlier on April 22. De Haan said in a blog post that gas prices are expected to rise in the coming weeks as the US-Iran war continues.
“Oil prices are climbing again as the market reacts to renewed geopolitical tensions and the cancellation of talks between the US and Iran,” de Haan wrote. “As a result, gasoline prices are set to rise further this week, with diesel prices expected to follow suit.”
How are gas prices determined?
The American Petroleum Institute, which lobbies the natural gas and oil industry, says that “Gasoline prices reflect costs throughout the fuel supply chain – from crude oil production to refining, distribution and retailing.”
“The biggest factor is the price of crude oil, which is traded on global markets,” the group said. “Refining costs, distribution and marketing expenses, and federal and state taxes also contribute to the price drivers ultimately pay at the pump.”
According to the U.S. Energy Information Administration, the price you see at the pump is made up of the following factors:
- Crude oil price: 51%
- Refinement cost: 20%
- Federal and state taxes: 18%
- Distribution and Marketing: 20%
For diesel pricing, the agency breaks down the structure as follows:
- Crude oil price: 41%
- Distribution and Marketing: 24%
- Refining cost: 18%
- Federal and state taxes: 17%
Which states have the most expensive gas prices?
California has the highest gas prices in the United States, with drivers there paying an average of $5.98 as of Wednesday, April 29, according to AAA. That was higher than the April 22 average price of $5.83 per gallon.
Here are the top 5 states with the most expensive gas prices in the country:
1. California
- Average gas price on April 29: $5.98
- Average gas price on April 22: $5.83
- Price difference: +15 cents
2. Hawaii
- Average gas price on April 29: $5.63
- Average gas price on April 22: $5.66
- Price difference: -3 cents
3. Washington
- Average gas price on April 29: $5.54
- Average gas price on April 22: $5.38
- Price difference: +16 cents
4. Oregon
- Average gas price on April 29: $5.12
- Average gas price on April 22: $4.97
- Price difference: +15 cents
5. Nevada
- Average gas price on April 29: $5.12
- Average gas price on April 22: $4.97
- Price difference: +15 cents