Why are gas prices so high?

Gas prices have fluctuated throughout U.S. history, with major increases often connected to oil shortages, inflation and international conflicts.

Gas prices rose in 1973, when the average price increased from 39 cents to 53 cents per gallon during an oil crisis that began in October of that year. However, prices increased further during a second oil crisis that began in early 1979. By 1981, the average price had reached $1.38 per gallon.

Gas prices have continued to fluctuate over the decades. In 2020, when the COVID-19 pandemic began, demand for oil dropped significantly as supply outpaced demand. In April of that year, average gasoline prices were approximately $2.17 per gallon. The pandemic also led to widespread closures of movie theaters, cancellations of sporting events and changes to school operations, including the transition to virtual learning.

Two years later, the national average price of gasoline reached a record high of approximately $5.02 per gallon in June 2022, according to AAA.

Several factors contributed to the increase, including inflation, rising demand and disruptions to the global oil supply. As the economy recovered from the pandemic, demand for gasoline increased, placing additional pressure on oil supplies.

Another major factor was Russia's invasion of Ukraine on Feb. 24, 2022. The conflict disrupted global energy markets and contributed to rising oil prices. According to AAA, the national average gasoline price was approximately $3.54 per gallon when the invasion began. By June, the average had climbed to more than $5 per gallon.

International conflicts have continued to affect global oil markets. In 2012, tensions increased when Iran threatened to close the Strait of Hormuz, an important shipping route for international oil transportation.

In February 2026, the United States and Israel launched military strikes against Iran, contributing to renewed concerns about global oil supplies. The conflict and disruptions to shipping through the Strait of Hormuz have contributed to higher fuel prices in the United States, according to reporting by The Associated Press and Reuters.

These events demonstrate how changes in oil supply, consumer demand and international conflicts can affect the prices Americans pay at the pump.