save money – Gas hit about $4.50 a gallon nationally, then slid and stabilized—only for oil markets to grow jumpy again after a U.S.-Iran diplomatic hope faded. With Memorial Day travel looming, analysts warn retail prices could move higher as global inventories remain “hi
By the time Memorial Day weekend travel starts in earnest, the price drivers see at the pump may be less about what happened last month—and more about what markets decide overnight.
The national average price of gas has been holding around $4.50 per gallon. after inflation climbed to an annual rate of roughly 3.5%—its highest level in nearly three years—pulled upward by a 21% jump in gasoline prices in one month. But the week’s momentum has looked shaky. drifting lower for stretches even as oil traders remain tied to geopolitical headlines.
Patrick De Haan. head of petroleum analysis at GasBuddy. described that tension in a blog post: gasoline moved down after oil prices softened on hopes for diplomatic progress between the U.S. and Iran. That optimism faded after President Trump’s meeting with China’s Xi Jinping failed to produce a breakthrough on Iran. while renewed warnings toward Tehran pushed oil prices higher again.
“The national average price of gasoline spent much of last week drifting lower after jumping early in the week as oil prices softened on hopes that diplomatic progress between the U.S. and Iran could help ease supply concerns,” De Haan said. “However. that optimism faded after President Trump’s meeting with China’s Xi Jinping failed to produce a breakthrough on Iran. while renewed warnings toward Tehran have helped push oil prices higher again.”.
He added that global oil inventories are trending toward “historically tight levels. ” leaving gasoline and diesel prices “extremely sensitive” to geopolitical developments and potential supply disruptions. “As a result. gasoline and diesel prices are likely to remain volatile. ” De Haan wrote. “and with Memorial Day approaching. any sustained increase in oil prices could begin pushing retail fuel prices higher again in the weeks ahead.”.
The stakes are clear in the numbers. The AAA Auto Club puts the national average at about $4.51 per gallon now, up sharply from $2.98 on Feb. 28, the day the United States and Israel launched military strikes against Iran.
The volatility is one reason the same drive can cost different amounts depending on where you stop.
Regional gaps, according to the U.S. Energy Information Administration, come from a mix of state policies and supply logistics. The agency cited differences in state and local gas taxes, distance from supply, supply disruptions, retail competition and operating costs, and environmental programs.
The EIA also pointed to transportation as a key driver of why distant stations can charge more: “Retail gasoline prices tend to be higher the further gasoline must be transported to the point of sale because transportation costs are higher.” It added that “anything that slows or stops gasoline production can result in increased bidding for available gasoline supplies. ” and that gasoline stations are often most expensive in places with fewer stations.
From that backdrop, the five highest gas prices listed by AAA as of May 18—along with their averages a week earlier on May 11—were:
1. California: $6.15 on May 18; $6.15 on May 11.
2. Washington: $5.77 on May 18; $5.76 on May 11.
3. Hawaii: $5.63 on May 18; $5.65 on May 11.
4. Oregon: $5.33 on May 18; $5.32 on May 11.
5. Alaska: $5.28 on May 18; $5.26 on May 11.
With prices already high—and potentially still moving—drivers are looking for practical levers before they roll out of town.
A set of common tactics can shave costs even when the national average wobbles. Skipping premium gas is one. PennyHoarder.com says, “higher-octane gas isn’t necessary or beneficial in most cars, so you’re just spending more money when you buy premium.”
Another step is using gas price apps that surface the cheapest nearby stations. Drivers can use apps like GasBuddy, Waze, or AAA to compare prices, while mapping apps such as Apple Maps and Google Maps now show prices at many stations when users choose their “gas near me” features.
Rewards programs can also reduce the hit. Many grocery stores offer rewards that give shoppers points they can use for discounts at nearby gas stations. The advice is to sign up at your local grocery store and make sure purchases are linked to the same account each time.
Credit card points are another option for people who already earn travel or rewards. Many cards offer points for purchases that can later be used for things like travel, and those rewards can also be applied to gas discounts.
Finally, some drivers may be able to pay less by changing how they pay. Some gas stations offer lower prices to customers who pay with cash instead of a credit card. and in some cases cash can save “10 cents or more per gallon.” PennyHoarder.com said those cash discounts are “their way of avoiding card processing fees.”.
Taken together. the picture ahead of Memorial Day is straightforward: the pump price drivers see is already far higher than it was in late February. and the direction of travel-time costs still depends on markets sensitive to supply tightness and geopolitics. The good news is that even when drivers can’t control the national average. they can often control where they buy. how they pay. and what grade they choose—before the weekend traffic turns every stop into a gamble.
gas prices Memorial Day weekend inflation oil inventories GasBuddy AAA U.S. Energy Information Administration gas price apps fuel rewards cash discounts