⛽ Explainer — April 2026
Why Are Gas Prices
So High Right Now?
The US national average hit nearly $5.00/gal in spring 2026 — the highest since 2022. Here's the complete breakdown of why, and what it would take for prices to come down.
What's in Your Gas Price
Before explaining 2026 specifically, it helps to understand what you're actually paying for when you fill up. The retail price of gas has four main components:
Crude Oil
~55%
The single biggest factor. Every $10/barrel move in Brent crude shifts pump prices ~24¢/gal over 2–3 weeks.
Refining Costs & Margins
~20%
The cost to convert crude oil into gasoline. Refinery outages, maintenance, and seasonal blend changes all move this.
Taxes
~15%
Federal (18.4¢/gal) + state taxes (14¢–77¢/gal depending on state). These don't change with crude — they're fixed.
Distribution & Marketing
~10%
Pipeline transport, terminal storage, trucking to stations, and retailer margin. Typically stable.
The 2026 Spike: Iran Closes the Strait
Gas prices were already elevated heading into 2026 at around $4.26/gal nationally — above historic averages but manageable. Then, on February 26, 2026, US-Israeli airstrikes targeted Iranian nuclear facilities. Iran responded by closing the Strait of Hormuz, the narrow waterway through which roughly 21 million barrels of oil pass every day — about 20% of global supply.
Feb 26, 2026
US-Israeli airstrikes on Iranian nuclear sites. Iran closes the Strait of Hormuz.
⛽ Gas spikes $4.26 → $4.68 in one week. Brent crude: $95/barrel.
Mar 14, 2026
Iran strikes US bases in Bahrain. Tanker traffic halted entirely.
⛽ National average hits $5.12 — highest since 2022. Brent: $118.
Apr 1, 2026
Brent crude peaks at $127/barrel. Global oil stocks begin drawing down.
⛽ National avg: $4.94. California hits $5.61. Texas reaches $4.54.
Apr 8, 2026 — Now
Pakistan brokers ceasefire. Strait to reopen. Oil markets fall 4.2%.
⛽ Analysts project $0.30–$0.50 drop within 2 weeks if deal holds.
Other Contributing Factors
US refinery utilization: American refineries were running at about 87% capacity in early 2026 — below the 92–95% typical of peak demand periods. Seasonal maintenance and several unplanned outages reduced domestic gasoline production, tightening supply independent of the crude market.
Summer blend switchover: Every spring, US refineries switch from cheaper winter-blend gasoline to more expensive summer-blend, which burns cleaner but costs more to produce. This transition adds roughly 15–30¢/gal and began in mid-March 2026, compounding the geopolitical spike.
Strong consumer demand: Despite high prices, US gasoline demand in early 2026 remained near 8.8 million barrels per day — close to pre-pandemic normals. Demand destruction (people driving less due to prices) has been limited so far, keeping pump prices elevated.
Will Prices Come Down?
The April 8 ceasefire is the most significant potential price-reducing event since the crisis began. If the Strait of Hormuz reopens and tanker traffic resumes, wholesale gasoline prices could fall $0.30–$0.50/gal within 10–14 days. Retail prices lag wholesale by about 2–3 weeks.
See the full outlook on our 2026 gas price forecast page, or check how prices compare by state.
More Questions
Why are gas prices so high right now?
The 2026 spike is driven by Iran's closure of the Strait of Hormuz after US-Israeli military action, which removed 20% of global oil supply from the market and pushed Brent crude above $127/barrel. Combined with spring refinery maintenance and the summer blend switchover, this created the sharpest price spike since 2022.
What percentage of gas price is taxes?
About 15–20% of the retail price is taxes. The federal excise tax is fixed at 18.4¢/gal. State taxes vary widely — from around 14¢/gal in Alaska to over 77¢/gal in California when all state fees are included. On a $4.87 national average, you're paying roughly $0.60–$0.90/gal in taxes depending on your state.
Do gas stations make a lot of profit from high prices?
Generally no — gas station retail margins are very thin, typically 5–15¢/gal. Most of a station's profit comes from the convenience store, not the pumps. When crude prices spike, stations often can't raise prices fast enough to cover their costs, squeezing margins further.
Why does California always have higher gas prices?
California's unique combination of high state taxes (57.9¢/gal excise), CARB-required fuel blends that can only be produced locally, fewer pipeline connections to Gulf Coast refineries, and a carbon cap-and-trade surcharge all compound to make California gas consistently $1.00–$1.50/gal above the national average. See our California gas prices page for a full breakdown.