Oil Prices Fall—But Gas Prices Are Still Climbing. See What Your State Is Paying at the Pump.

Key Takeaways

• The national average gas price rose 6 cents to $3.54 per gallon today, even as oil prices have pulled back.
• Pump prices have been climbing sharply amid supply fears tied to the Iran war, adding 56 cents since late February.
• Only one state remains below $3 per gallon, while California drivers are paying well over $5.

Gas Prices Rise Above $3.50—Despite Today’s Oil Pullback

Oil prices finally edged lower Tuesday after rising steadily since the Iran conflict began. But drivers aren’t seeing relief at the pump yet.

The national average for regular gas rose 6 cents overnight to $3.54 per gallon, according to AAA, bringing the increase since late February to 56 cents. The average had held below $3 for 13 straight weeks before this recent run-up—the first sustained stretch in $2 territory since 2021.

Gasoline prices don’t move in real time with crude oil, since stations are selling fuel refined from oil purchased days or even weeks earlier. When crude climbs for several days in a row—as it did for more than a week—pump prices often continue rising even after oil pauses or pulls back

Why This Matters

Gas prices don’t fall as quickly as oil, so relief at the pump may take time even if crude prices continue dropping. Still, what you’ll pay depends heavily on your state—and the gap can be more than $2 per gallon.

Where Gas Is Cheapest—And Most Expensive—Right Now

Gas prices vary sharply depending on where you live. While the average has surged everywhere, state-level prices still span a wide range across the country.

As of March 10, Kansas is the only state where the average price for regular gas remains below $3 per gallon, according to AAA. Every other state is now above that level as prices continue to climb.

At the high end, five states are averaging more than $4 per gallon: Washington, Hawaii, Nevada, Oregon, and California. California remains the most expensive market in the nation, with drivers paying an average of $5.29 per gallon.

The result is a spread of $2.33 per gallon between the cheapest and most expensive states.

The Last Time Gas Hit $5

The national average briefly topped $5 per gallon in June 2022. Amid this week’s surge, California’s average is now above that mark—though most states still have averages in the $3 range.

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Why Gas Prices Vary So Widely by State

The wide differences in state gas prices aren’t random. They reflect structural factors that shape how fuel is taxed, produced, and delivered across the country.

Fuel taxes are one of the biggest drivers of variation. According to the U.S. Energy Information Administration, federal and state taxes accounted for more than 14% of the average price per gallon in 2023. Because some states levy significantly higher gasoline taxes and fees than others, those differences show up directly at the pump.

Geography and infrastructure also matter. States that are closer to major refineries or pipeline networks often benefit from lower transportation costs, while more isolated markets can face supply constraints that push prices higher.

In some cases, environmental rules play a role. California, for example, requires a cleaner-burning gasoline blend that relatively few refineries produce, contributing to its persistently higher prices.

When oil prices rise sharply, those built-in cost differences can amplify the impact in already expensive states. And even when crude pulls back, those underlying factors don’t disappear—helping explain why the gap between states can remain wide.

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