Many blame the conflict in Iran, but President Donald Trump has said on multiple occasions that the U.S. does not need the oil from the Strait of Hormuz.
Iran is a major factor for the current increases in gas prices, but it is not the only cause.
Caleb Jasso, policy advisor and analyst with a focus on market-oriented approaches to U.S. energy and development for the Institute for Energy Research (IRD), says it comes down to oil being traded globally and priced as a global commodity.
"When you have a supply crisis in one region of the world, because it's priced as a global product, it then impacts everything else," he explains.
Jasso notes that the realm of fuel supply is a very competitive market for suppliers and consumers, and that is why there are not drastic changes in the prices of gas at the pump within the states.
"When you see suppliers keeping the price high, there's not a ton of incentive to do so because of how competitive it is," he tells AFN. "I myself will drive an extra five minutes to go save 2 cents a gallon."
Comparing prices in California to those in Texas, he says a lot of the difference comes down to fuel blend types as well as the taxation the states add on top of federal taxes.
He also touches on why gas prices are quick to go up when something bad happens and slow to come down when nothing is wrong.
"The gas stations have very slim margins, and because of that, they have to increase their prices initially in order to then buy their future supply, which they do at a wholesale level," Jasso details. "They're increasing prices so that they can purchase future supply, and then when it slows down, whatever global price shock is happening, that's why you'll see it trickle down slower."
In short, he says sudden price increases happen when fuel realtors are trying to hedge the future purchase of that supply in general, and they are anticipating how long that supply challenge may last.
"So, they're trying to lock in their supply moving forward so that they can then lower the price gradually," says Jasso.
Today's national average for a gallon of regular gasoline is $4.09, up from $3.71 this time last month and $3.16 on this day last year.
Treasury Secretary Scott Bessent said this week that he is optimistic the U.S. could see gas prices beginning with $3.00 in the near future.
