The national average price for regular gas continued its downward trend on Monday, the start of the work week, falling to $4.164 per gallon, according to AAA. It marks the third consecutive week that fuel costs have decreased.
Gas prices have dropped a fair amount in recent days. On Thursday, a gallon of regular gas was $4.24. A week ago, fuel cost $4.32 per gallon, and a month ago, it was up to $4.546. The 38-cent-per-gallon decrease in price is a welcome relief for all the country’s drivers. Gas prices have dropped 40 cents per gallon since setting a 2026 record high on May 21, when gas cost $4.564 per gallon.
Prices have fluctuated significantly this year, and that is not expected to change any time soon. And while prices have fallen over the last month, airstrikes in the Middle East over the weekend between Iran and Israel could jeopardize the continued streak of falling fuel costs.
On Jan. 12, 2026, the national average price for a gallon of regular gas dropped to $2.79, the lowest price in over five years. It is unknown when gas prices will return to that level, if they ever will. Fuel costs began to increase in January and early February, primarily due to winter weather that affected much of the country. Prices began to soar as Operation Epic Fury commenced on Feb. 28.
After the surge in gas prices in early spring, a dip at the pumps to begin the summer is much needed. Relief at the pumps has also spread nationwide, with 23 states now reporting gas price averages below $4 per gallon, according to AAA. This is in stark contrast to May 20, when every state in the nation had an average price of $4 per gallon or higher.
As hinted above, fuel pricing trends have been linked to foreign affairs related to the Iran war. Prices started to drop amid rumors of a near-peace deal between Iran and the United States, shortly before Memorial Day weekend. Experts theorized that this speculation has contributed to the recent drop in fuel costs. It is quite a contrast from the middle of May, when geopolitical tensions between the U.S. and Iran continued to rise, as did gas prices. Furthermore, uncertainty surrounding the Strait of Hormuz blockade led to fuel costs rising for much of May before declining recently.
Significant and sudden changes in gas prices have been a staple of 2026 so far. Yet despite these fluctuations, one thing that has remained constant about U.S. gas prices is that they vary by region. The states with the lowest gas prices, with one exception, are in the South — many along the Gulf Coast. The states with the highest gas prices in the country are located in the western U.S.
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California remains the state with the highest gas prices in the country at $5.895 per gallon. While the highest in the nation, the average gas price in the Golden State has fallen from $6.16 per gallon just a month ago. The next state with the highest gas prices in the country is Washington state at $5.624 per gallon, followed by Hawaii with a statewide average of $5.584 per gallon. Alaska is next, with an average price of $5.175 per gallon, and then Oregon at $5.11 per gallon.
Meanwhile, Indiana remains the state with the lowest prices in the country at $3.438 per gallon. This is approximately 19 cents per gallon lower than Texas, the next cheapest state in the U.S., with a statewide average of $3.627 per gallon. Oklahoma is next at $3.64 per gallon. South Carolina follows at $3.704 per gallon. Next is Louisiana at $3.728 per gallon.