The national average price for regular gasoline rose 2.5 cents last week to $3.00 per gallon, according to GasBuddy data.
Diesel prices climbed 4.7 cents to $3.64 per gallon, marking a continued upward trend.
A refinery fire in the Midwest and new U.S. sanctions on Russia contributed to higher fuel costs.
After weeks of relative calm at the pump, U.S. drivers are seeing gas prices tick upward once again. However, the price increase was largely confined to one region.
The national average price for regular gasoline increased by 2.5 cents per gallon over the past week, reaching $3.00, according to GasBuddy’s survey of more than 150,000 stations nationwide. Despite the rise, prices remain 10.8 cents lower than a month ago and 7.4 cents below where they stood at this time last year.
Patrick De Haan, head of petroleum analysis at GasBuddy, said the increase was largely driven by a refinery fire in the Midwest, which temporarily disrupted supply and sent wholesale gasoline prices soaring in the region.
“While the spike in prices in affected areas was significant, relief is likely in the weeks ahead as the situation stabilizes,” De Haan noted in the company’s blog.
He added that a potential U.S.-China trade deal could temporarily buoy oil prices.
“Optimism about increased trade could keep the national average slightly above the $3 mark for a couple more weeks before dipping below $3 ahead of Thanksgiving,” De Haan said.
Global factors push oil prices higher
Oil prices also edged higher last week after President Trump imposed new sanctions on Russia, prompting major buyers like China and India to reduce imports. The result: tighter global supply and solid gains for crude.
At the start of the week, West Texas Intermediate (WTI) crude rose 3 cents to $61.53 per barrel, up sharply from $57.03 a week ago. Brent crude followed suit, rising to $65.96 per barrel from $60.72.
UBS commodities analyst Giovanni Staunovo said the full impact will depend on whether countries like India and Turkey cut their purchases of Russian oil and how quickly Russia finds alternative buyers.
Supplies tighten
The latest U.S. Energy Information Administration (EIA) report showed modest drawdowns across key fuel inventories. Oil stockpiles dropped by 1 million barrels and now sit about 4% below typical seasonal levels. Gasoline inventories fell by 2.1 million barrels, while distillates (including diesel and heating oil) dropped by 1.5 million barrels.
Refinery utilization rose to 88.6%, but gasoline demand slipped slightly to 8.45 million barrels per day — a sign that consumers may already be adjusting to higher prices.
The most common gas price nationwide is $2.89 per gallon, unchanged from last week, while the median price climbed to $2.87. Some drivers are paying much more — the top 10% of U.S. stations are averaging $4.38 per gallon, compared to $2.41 at the cheapest 10%.
Lowest state averages:
Mississippi: $2.54
Louisiana: $2.56
Oklahoma: $2.57
Highest state averages:
California: $4.55
Hawaii: $4.43
Washington: $4.29
Michigan saw the largest weekly spike (+16.6¢), while Ohio drivers enjoyed the biggest drop (-12¢).
While geopolitical tensions and refinery disruptions are keeping prices elevated for now, analysts expect a modest retreat in the coming weeks. As refinery operations stabilize and seasonal demand wanes, motorists could see prices fall back below $3 per gallon before the Thanksgiving travel rush.