Gas prices rise again Sunday, remain above $4 as upward trend continues

WASHINGTON — Gas prices climbed once again Sunday, rising slightly as the national average remains above the $4 mark amid ongoing global oil tensions.

The national average for a gallon of gas was $4.110 Sunday, according to AAA. That’s up from Saturday’s average of $4.104 and continues a steady upward trend after prices first crossed $4 earlier this week for the first time since 2022.

Prices remain significantly higher than a month ago, when gas averaged below $3. The increases have been felt nationwide, with every state now averaging at least $3.278 per gallon and the highest state averages reaching about $5.923.

Diesel prices also remain elevated after spiking earlier this week, continuing to put pressure on transportation and supply costs.

California, Hawaii and Washington continue to lead the nation with the highest gas prices, while states such as Oklahoma, Iowa and Kansas have the lowest averages.

Prices began to rise sharply after the U.S. and Israeli attack on Iran on Feb. 28, which led to escalating tensions and military conflicts across the Middle East, where a large majority of global oil is sourced and distributed.

While not the sole factor for rising costs, volatile trade routes and other uncertainties in production have led to higher prices of crude oil, which is refined to make diesel, gasoline and jet fuel. 

Crude oil has surpassed $100 per barrel several times in recent weeks, driving higher fuel costs. Rising diesel and jet fuel prices are also expected to increase transportation and air travel costs, potentially pushing up prices for goods across supply chains.

The Strait of Hormuz, through which roughly 20 percent of global oil passes, has effectively been closed off by Iran’s military for several days. The country faces mounting international pressure to reopen, including threats of military action by U.S. President Donald Trump.

The White House issued a statement Tuesday, essentially urging consumers to be patient. 

“When Operation Epic Fury is complete, gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions,” White House press secretary Karoline Leavitt said. “President Trump remains committed to fully unleashing American energy dominance, lowering costs, and putting more money back in the pockets of hardworking American families.”

Seasonal demand is also contributing to the increase, as warmer weather and spring break travel typically lead to higher gasoline consumption, according to AAA.

A lot of it is outside the gas retailer’s control. Roughly half the price at the pump pays for the cost of crude oil, the main ingredient in gasoline, according to the U.S. Energy Information Administration. About 20% goes to refiners who turn crude into gas.

Those costs have risen as crude oil prices jumped in response to the war and shipping disruptions in the Strait of Hormuz. Gas retailers are adjusting the price at the pump to account for the higher price they just paid for their next shipment of gasoline.

Taxes — federal, state and local — account for nearly 20% of the price, while about 10% is left for retailers, who still have to pay for transportation, labor and other expenses.

Retailers’ markup has averaged about 38 cents a gallon over the past five years, according to the convenience store trade group NACS, citing data from research firm OPIS. After expenses, stations may keep roughly 15 cents per gallon, said Jeff Lenard, a vice president at NACS.

“Some make more, some make less,” Lenard said.

Patrick De Haan, head of petroleum analysis at GasBuddy, compared it to a homeowner’s role in setting their sale price.

“If I was selling a house today, I’d be beholden to whatever the housing market is,” De Haan said. “That’s the same for gas station owners. Whatever the price of oil and gasoline are, they are a price taker, not maker.”

Although the national average just passed $4 a gallon, the price that drivers pay varies widely by state, city and station.

Taxes alone can create large gaps. California’s gas taxes and fees totaled about 71 cents per gallon last year, compared with roughly 9 cents in Alaska.

Distance from refineries, the type of retailer, how much volume the location goes through and whether there are other fuel options nearby also play a role.

Gas stations near competitors may choose to price gasoline competitively on large outdoor signs to attract drivers, hoping they’ll come inside and buy higher-margin items, said Neal Walters, a partner focused on energy at the global management consulting firm Kearney.

“It’s one of the only retail locations where you don’t have to go into the store to find out what you’re paying,” Walters said.

The Associated Press contributed to this report.