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    Home»Sectors»Iran War Triggers Gas Price Surge—Here’s Where Drivers Are Paying the Most and Least
    Sectors

    Iran War Triggers Gas Price Surge—Here’s Where Drivers Are Paying the Most and Least

    Money MechanicsBy Money MechanicsMarch 6, 2026No Comments3 Mins Read
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    Iran War Triggers Gas Price Surge—Here’s Where Drivers Are Paying the Most and Least
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    Key Takeaways

    • Gas prices have risen across the U.S. this week as oil prices have jumped amid a widening Middle East conflict that threatens supplies.
    • The national average now stands at $3.32, with Kansas and Oklahoma the cheapest and California, Washington, and Hawaii in the mid- to upper-$4 range.
    • After falling below $3 in December for the first time since 2021, the national average stayed there for about 13 weeks before surging this week.

    U.S. Gas Prices Climbed Quickly This Week, Rising Above $3.30

    Oil prices have climbed steeply as the Iran war fuels fears of supply disruptions, and the impact has quickly shown up at the pump. The national average for regular gas has surged 34 cents a gallon in five days, rising from $2.98 on Sunday to $3.32 by Friday.

    Prices first rose above $3.00 on Monday after holding below that level for 13 straight weeks—the first sustained stretch under $3 since 2021. Since then, the national average has climbed each day as the Middle East conflict escalates and oil prices rise.

    Because gasoline prices tend to track crude, the rally in energy markets has quickly filtered through to drivers.

    Why This Matters

    Gas prices are jumping higher, which could affect commuting and travel budgets if the trend continues. Still, what you pay depends heavily on your state—and the gap can be as much as $2 per gallon.

    Where Gas Is Cheapest—And Most Expensive—Right Now

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

    As of March 6, drivers in Kansas, Oklahoma, Mississippi, and Tennessee are paying some of the lowest averages in the nation, all below $2.90 per gallon, according to AAA.

    At the other end of the spectrum, California, Washington, Hawaii, and Oregon all have statewide averages above $4.00. California is the highest at $4.91 per gallon, which is $2 more than what drivers are paying in some of the cheapest states.

    Western states typically see higher prices because of fuel taxes, environmental regulations, and supply constraints. With oil prices rising amid the Iran war, those regional differences are now layered on top of broader upward pressure at the pump.

    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 approaching that mark—though most states still have averages in the $3 range.

    Why Gas Prices Vary So Widely by State

    The differences can be striking. A driver in Kansas could pay $2 less per gallon than someone filling up in California. But that wide spread isn’t random—it reflects structural differences in how gasoline is taxed, produced, and delivered across the country.

    Fuel taxes are one of the biggest reasons prices vary by state, according to the U.S. Energy Information Administration. In 2023, federal and state taxes accounted for more than 14% of the average price per gallon. Because some states add far more in taxes and fees than others, those differences show up clearly at the pump.

    Prices also depend on proximity to refineries and pipelines, as well as whether a state requires special fuel blends that cost more to produce. California, for example, mandates a unique, cleaner-burning gasoline blend that relatively few refineries produce. The state also has one of the highest gasoline taxes in the country.



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