Gas Prices Hit 4-Year High Ahead of Memorial Day

Gas prices in the U.S. have surged to their highest level in four years, averaging $4.55 per gallon as of Friday, according to AAA. The increase, driven by the ongoing war in Iran and its impact on global oil supply, marks a 42% rise from last year. Six states, including Washington and Alaska, now report average prices above $5 per gallon, with California leading at $6.13. The conflict has disrupted oil transport through the Strait of Hormuz, a critical maritime route for global crude supply, causing crude oil prices to soar. The U.S. West Texas Intermediate futures price has risen 50% since the war began on February 28. Despite the high costs, AAA forecasts that 39 million Americans will travel by car over the Memorial Day weekend, exceeding last year’s numbers. The surge in fuel prices is expected to add $2 billion in gasoline expenses over the holiday weekend, equating to roughly $22 million per hour, according to GasBuddy analyst Patrick De Haan. Nineteen states, including Colorado, Ohio, and New Mexico, are projected to set record-high Memorial Day gas prices. Crude oil, which accounts for over half of the price at the pump, remains a key factor in the cost increase. In California, Governor Gavin Newsom has publicly clashed with Chevron, urging residents to avoid the company’s gas stations. Chevron has countered by blaming state policies for high prices, while Newsom’s office advises Californians to seek cheaper fuel at unbranded stations.