Gas Prices Are Plunging, But the Relief May Be Short-Lived
by: GasBuddy
Published: June 1, 2026
BOSTON...The nation’s average price of gasoline has fallen 19.5 cents over the last week and stands at $4.26 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 down 17.8 cents from a month ago and is $1.18 per gallon higher than a year ago. The national average price of diesel fell 15.5 cents in the last week and stands at $5.437 per gallon.
“Average gasoline prices declined in all 50 states over the last week, with GasBuddy now tracking 15 states where the average price of gasoline has fallen below $4 per gallon, offering motorists some of the most widespread relief seen in weeks,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Much of the decline was driven by falling oil prices and the unwinding of recent price cycles, as growing optimism surrounding a potential U.S.-Iran agreement helped ease concerns over global oil supplies. Diesel prices also posted a substantial decline, falling more than 15 cents per gallon nationally. However, the coast is anything but clear. Oil prices edged higher Sunday evening as uncertainty surrounding a potential deal persisted and renewed Israeli attacks added another layer of geopolitical risk. While motorists may continue to see some short-term relief, some price-cycling states could soon experience another upward swing as retailers run out of room to lower prices further. Overall, any setback in negotiations could quickly reverse the recent decline in fuel prices.”
OIL MARKET DYNAMICS
Oil prices moved lower over the past week as markets grew increasingly optimistic that diplomatic efforts between the U.S. and Iran could eventually yield progress, easing concerns about potential disruptions to global oil supplies. While geopolitical tensions remain elevated, traders have gradually reduced some of the risk premium that had been built into crude prices earlier this summer. Expectations that key shipping routes would remain open and that negotiations could continue helped put downward pressure on prices despite ongoing uncertainty.
Even so, volatility remains a defining feature of the market. In early Monday trade, WTI crude oil was up $2.12 per barrel to $89.48 but remained below last Tuesday’s post-Memorial Day opening level of $92.58 per barrel. Brent crude was up $1.75 to $92.86 per barrel, also below last Tuesday’s $98.95 starting point. The rebound to start the week suggests traders remain cautious about assuming a smooth path toward a diplomatic resolution, and oil prices will likely continue to swing as markets react to developments surrounding negotiations, regional security, and the outlook for global supply. “While oil flows through the Strait of Hormuz remain restricted, and oil inventories keep falling, the market focus for now remains on the possibility that a deal between the U.S. and Iran can be reached. Oil prices have fallen to a multi-week low as a result,” added Giovanni Staunovo, UBS commodities analyst, via e-mail.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending May 22, 2026, showed U.S. oil inventories fell by 3.3 million barrels and are about 2% below the seasonal average for this time of year, while the SPR fell 9.1 million barrels to 365.1 million barrels. Gasoline inventories fell by 2.6 million barrels and are about 6% below the five-year seasonal average, while distillate inventories fell by 2.1 million barrels and are about 11% below the five-year seasonal average. Refinery utilization rose 2.9 percentage points to 94.5%, while implied gasoline demand, the EIA’s proxy for retail demand, rose 489,000 bpd to 9.256 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists was $3.99 per gallon, unchanged from a week ago, followed by $3.89, $4.09, $3.79, and $4.19, rounding out the top five most common prices.
The median U.S. gas price is $4.09 per gallon, down 20 cents from last week and about 17 cents lower than the national average.
The top 10% of stations in the country average $5.73 per gallon, while the bottom 10% average $3.54 per gallon.
The states with the lowest average prices: Indiana ($3.66), Texas ($3.76), and Oklahoma ($3.77).
The states with the highest average prices: California ($5.99), Washington ($5.66), and Hawaii ($5.55).
Biggest weekly changes: Colorado (-33.9¢), Florida (-33.8¢), Ohio (-29.2¢), Michigan (-26.4¢), Kentucky (-25.0¢).
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 $4.59, rounding out the top five most common prices.
The median U.S. diesel price is $5.29 per gallon, down 10 cents from last week and about 14 cents lower than the national average.
Diesel prices at the top 10% of stations in the country average $6.31 per gallon, while the bottom 10% average $4.60 per gallon.