The average price of a gallon of gas in the United States could soon reach $4.50 per gallon, one prominent fuel industry analyst said.
“Ohhh yeah watch out folks… National average could quickly hit $4.50/gal,” Patrick De Haan, head of petroleum analysis at GasBuddy, wrote in an X post.
The prediction comes as the average price of gas rose to $4.23 per gallon on Wednesday, April 29, up from an average of $4.02 one week ago on April 22. De Haan said in a blog post that gas prices are expected to keep rising in the coming weeks as the U.S.-Iran war continues.
“Oil prices have been climbing again as markets react to renewed geopolitical tensions and the cancellation of talks between the U.S. and Iran,” De Haan wrote. “As a result, gasoline prices are set to rise further this week, with diesel expected to follow.”
How Are Gas Prices Determined?
The American Petroleum Institute, which lobbies for the natural gas and oil industry, says that “gasoline prices reflect costs across the fuel supply chain — from crude oil production to refining, distribution and retail sales.”
“The largest factor is the price of crude oil, which is traded in 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 composed of the following factors:
Crude oil pricing: 51%
Refining costs: 20%
Federal and state taxes: 18%
Distribution and marketing: 20%
For diesel pricing, the agency breaks down the composition like this:
Crude oil pricing: 41%
Distribution and marketing: 24%
Refining costs: 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 on Wednesday, April 29, according to AAA. That was up from an average price of $5.83 per gallon on April 22.
Here are the top 5 states with the most expensive gas prices in the nation:
1. California
Average gas price on April 29: $5.98
Average gas price on April 22: $5.83
Difference in price: +15 cents
2. Hawaii
Average gas price on April 29: $5.63
Average gas price on April 22: $5.66
Difference in price: -3 cents
3. Washington
Average gas price on April 29: $5.54
Average gas price on April 22: $5.38
Difference in price: +16 cents
4. Oregon
Average gas price on April 29: $5.12
Average gas price on April 22: $4.97
Difference in price: +15 cents
5. Nevada
Average gas price on April 29: $5.12
Average gas price on April 22: $4.97
Difference in price: +15 cents