National gas average reaches $4.55 a gallon, AAA reports

The Story

The national average price for a gallon of gasoline stands at $4.55, a four-year high, according to AAA, as a record 45 million Americans are estimated to travel for Memorial Day weekend. Prices have been elevated since the start of the war in Iran, with no relief expected, straining household budgets and angering voters. In California, which has the highest gas prices in the nation, Governor Gavin Newsom is publicly urging drivers to avoid Chevron stations and instead buy unbranded gas, while Chevron has posted placards blaming state policies. Experts advise driving smoothly, checking tire pressure, removing excess weight, and using regular gas if premium is only recommended to improve fuel efficiency. Data on switching to electric vehicles is mixed: new EV sales remain depressed after the end of a federal tax credit, but used-EV sales showed some acceleration in March while other data found no significant shift. An average driver could save about $1,800 per year by switching to an EV, though savings vary by location and driving habits. Some drivers are choosing alternatives like e-bikes or public transit, while others are cutting spending elsewhere to afford higher fuel costs.

Key Facts

• The national average for a gallon of gasoline is $4.55, a four-year high, according to AAA.
• AAA estimates a record 45 million Americans will travel this Memorial Day weekend despite high prices.
• Gasoline prices have been elevated since the start of the war in Iran.
• California Governor Gavin Newsom is publicly feuding with Chevron, discouraging drivers from using its stations.
• Chevron moved its headquarters out of California in 2024 and is buying oil through an offshore pipeline California has tried to keep shut down.
• A news release from the Governor’s office advised drivers to “AVOID Chevron” and said unbranded gas meets the same state standards.
• Americans have logged more miles since the war with Iran started, according to analytics company Arity.
• Driving efficiently – smooth acceleration, soft braking, slowing down – can improve fuel economy, as can removing underinflated tires, heavy loads, and unused roof racks.
• Consumer Reports’ deputy auto editor Jonathan Linkov said “all cars, except the most esoteric supercars or older cars, can run fine on regular” gasoline if premium is only recommended.
• New EV sales are depressed after the end of a $7,500 federal consumer tax credit last fall.
• CarGurus reports used-EV sales accelerated in March; Cox Automotive reports strong prices for used EVs at wholesale auction; iSeeCars.com found no appreciable shift in used-EV sales.
• An average driver driving 15,000 miles per year can save $1,800 per year by switching to an electric car, according to Janelle London of Coltura; a heavy driver (25,000 miles) can save $3,000 per year.
• In North Dakota, driving an EV is like paying less than $1 per gallon of gasoline; in California, about $2.70 per gallon, according to a map by Yale Climate Connections.
• Transit ridership was steady for most of March and dropped slightly in the week ending April 4, according to the Transit app; Stephen Miller, policy lead at Transit, said Easter may have pulled ridership down and that people only shift to transit if gas prices stay high.
• Jerick White of Houston bought his first e-bike in March, citing the cost of the car, maintenance, and gas as reasons; he works from home and lives close to errands.
• Julie and Vince Rossi sold their house to live full-time in an RV and drive from Arizona to Virginia; they skip museums and amusement parks for free attractions to afford doubled fuel costs.

Conflicting Reports

The source article reports conflicting data on used-EV sales: CarGurus reported that used-EV sales accelerated in March, and Cox Automotive reported strong wholesale prices, but iSeeCars.com found no appreciable shift in used-EV sales. The article notes that “what consumers are viewing on the site tends to be an earlier indicator than sales,” according to CarGurus’ Kevin Roberts, suggesting interest may precede sales.

Still Unclear

How long gasoline prices will remain elevated and whether that will lead to permanent shifts in driving habits or vehicle purchases is unclear. The article notes that analysts say high gasoline prices motivate shoppers to choose more fuel-efficient or electric vehicles only if prices stay elevated for a long time.

Misconceptions

The article addresses two misconceptions: (1) Premium gasoline is not required for most cars; if it is only “recommended” and not “required,” drivers can use regular gas without damaging the engine. (2) Unbranded gas comes from the same refineries, storage tanks, and pipelines as branded gas and meets the same state standards, according to the Governor’s Press Office.

Key Figures

• Gov. Gavin Newsom (California)
• Jonathan Linkov (deputy auto editor, Consumer Reports)
• Kevin Roberts (director of economic and market intelligence, CarGurus)
• Janelle London (co-executive director, Coltura)
• Stephen Miller (policy lead, Transit)
• Jerick White (Houston e-bike buyer)
• Julie Rossi (RV traveler)
• Vince Rossi (RV traveler)

Sources: NPR