Gas Averages $4.06, Priciest August on Record
Gas Averages $4.06, Priciest August on Record
The News
A gallon of regular gasoline averaged $4.063 nationally on Monday, Aug. 17, according to AAA — up just over five cents from a week ago and more than 92 cents above what drivers paid at this time last year.
AAA says 2026 is the highest August on record for the national gasoline average.
The pressure is coming from crude. AAA said last week that continued uncertainty around the Strait of Hormuz is keeping oil in the $80-per-barrel range even though demand is down.
The Numbers
Monday's national average was $4.063, per PennLive's reading of AAA data; the Washington Examiner logged it at $4.0636, a hair below Sunday's $4.0656 but above the $4.0091 of a week earlier. A month ago the average was $3.981. A year ago it was $3.138.
Diesel is climbing harder: $5.445 a gallon Monday, up from $5.299 a week ago and $5.058 a month ago — and far above last year's $3.702.
Prices have swung wildly all year, from a low of $2.79 in January to $4.562 in May, the Examiner reported. Monday marks the third time in 2026 the national average has topped $4, itself a record.
Twenty-three states now average $4 or more, 11 average $4.30 or more, and no state is under $3.55, according to AAA.
Cheapest And Most Expensive States
Cheapest, as of Aug. 17: Louisiana at $3.569, Indiana at $3.585, Alabama at $3.604, South Carolina at $3.605 and Mississippi at $3.606.
Most expensive: California at about $5.58, Hawaii at $5.432, Washington at $5.19, Alaska at $4.839 and Nevada at $4.766.
The split is geographic and consistent: the highest prices sit on the West Coast, the lowest in the Midwest and South.
Reactions
President Donald Trump has tied the pain to the Iran conflict and promised relief when it ends. "As soon as the situation with Iran ends, oil is going to go down, and we will have completed something in such a short amount of time, that is a miracle," he said Aug. 5 at an event in Las Vegas, according to the Washington Examiner.
"When oil goes down, and it's going to go down very rapidly, and is already happening," Trump said of the swings. "We may have to send it up again. We may have to — you know what happens when we send it up. But we don't have to. But when the oil and gasoline go down, everything else goes down."
He gave no timeline.
What's Next
The pump follows the barrel, and the barrel follows the Strait of Hormuz. As long as the military conflict involving Iran, Israel and the United States keeps shipping through the strait in doubt, AAA's explanation for high crude prices stays in place — and so does the $4 handle.
More
The oil surge is showing up well beyond American gas stations: Japan's economy grew just 1.1% in its latest reading as energy costs climbed, as The Frank reported Monday. Diesel matters for the same reason — it moves freight, and freight costs end up in grocery prices.
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