A Welcome Drop in Gas Prices, and a Warning That It Might Not Last
by: GasBuddy
Published: August 10, 2026
BOSTON...The nation’s average price of gasoline has fallen 10.7 cents over the last week and stands at $3.94 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is up 9.5 cents from a month ago and is 85.6 cents per gallon higher than a year ago. The national average price of diesel fell 5.1 cents in the last week and stands at $5.275 per gallon.
“Average gasoline prices declined in 47 states over the last week while diesel fell in 39, with the national average price of gasoline posting a double-digit drop per gallon,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Diesel’s decline was roughly half that of gasoline, in part due to continued pressure on refined product markets from ongoing Ukrainian attacks on Russian oil refineries. However, the wild ride continues. Iran is pushing back against a reopening of the Strait of Hormuz, and oil prices edged modestly higher in Sunday night trading, signaling that the recent relief may not last. With the Strait remaining closed, upward pressure on fuel prices could return quickly, and if things don’t go well, the national average could climb to its highest level ever recorded this late in the calendar year. For now, enjoy the dip, but keep a close eye on how the Strait situation develops in the days ahead.”
OIL MARKET DYNAMICS
Oil prices edged higher to start the week as conflicting signals from Washington and Tehran kept markets on edge, with Iran’s foreign minister flatly stating over the weekend that Tehran is not in direct talks with the U.S.—contradicting U.S. claims that a deal is near—while Iran’s supreme national security council insisted the Strait of Hormuz will remain closed until six conditions are met, including lifting of sanctions and war reparations. Shipping through the strait remains near-paralyzed at just 8 to 15 vessel transits per day versus roughly 130 before the conflict. In early Monday trade, WTI was up $1.44 to $79.62 per barrel, modestly above last Monday’s $78.94, while Brent gained $1.45 to $85.00 compared to $82.95 a week ago—a muted move reflecting a market that has largely priced in a prolonged standoff as the war enters its sixth month. “Last week oil prices fell at the start of the week on expectations that flows through the Strait could improve, but as flows remain restricted, oil prices started to recover. This week all energy agencies will issue their monthly oil market reports, with market focus on how quickly oil inventories fell in recent months, and if there are changes on their demand and supply forecasts,” added Giovanni Staunovo, UBS commodities analyst, in an email.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending July 31, 2026, showed U.S. commercial crude oil inventories rose by 2.5 million barrels and are about 6% below the five-year average for this time of year, while the SPR fell 2.8 million barrels to 304.8 million barrels. Gasoline inventories fell by 1.6 million barrels and are about 7% below the five-year seasonal average, while distillate inventories fell by 3.5 million barrels and are about 12% below the five-year seasonal average. Refinery utilization fell 0.7 percentage points to 96.5%, while implied gasoline demand, the EIA’s proxy for retail demand, fell 10,000 bpd to 9.031 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists was $3.99 per gallon, up 30 cents from a week ago, followed by $3.79, $3.89, $3.69, and $3.59, rounding out the top five most common prices.
The median U.S. gas price is $3.82 per gallon, down 7 cents from last week and about 12 cents lower than the national average.
The top 10% of stations in the country average $5.20 per gallon, while the bottom 10% average $3.30 per gallon.
The states with the lowest average prices: Indiana ($3.48), South Carolina ($3.49), and Oklahoma ($3.52).
The states with the highest average prices: California ($5.55), Hawaii ($5.41), and Washington ($5.07).
Biggest weekly changes: Michigan (-20.1¢), Delaware (-18.1¢), Ohio (-16.4¢), Oklahoma (-14.6¢), New Mexico (-13.8¢).
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $4.99 per gallon, unchanged from last week, followed by $4.89, $4.79, $4.69, and $4.85, rounding out the top five most common prices.
The median U.S. diesel price is $5.19 per gallon, down 8 cents from last week and about 9 cents lower than the national average.
Diesel prices at the top 10% of stations in the country average $5.83 per gallon, while the bottom 10% average $4.66 per gallon.
The states with the lowest average diesel prices: Oklahoma ($4.72), Kansas ($4.82), and Missouri ($4.86).
The states with the highest average diesel prices: California ($6.85), Hawaii ($6.79), and Washington ($6.12).
Biggest weekly changes: Texas (-15.3¢), Florida (-13.6¢), Delaware (-12.6¢), North Carolina (-12.