Gas Prices Drop on Tax Cuts, But Supertanker Strikes and $100 Oil Tell a Different Story
by: GasBuddy
Published: October 19, 2026
DALLAS...The nation’s average price of gasoline has fallen 5.5 cents over the last week and stands at $4.24 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 23.0 cents from a month ago and is $1.26 per gallon higher than a year ago. The national average price of diesel rose 5.2 cents in the last week and stands at $6.300 per gallon.
“Average gasoline prices declined in the vast majority of states over the last week, led by a combination of state fuel tax suspensions and price-cycling markets working their way back down, while diesel rose in most states, though the largest diesel decline was driven by a state tax suspension,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “For now, the outlook remains tied to geopolitical developments, and some price-cycling states could see upward swings in the days ahead if oil markets firm at all. Motorists in states that benefited from tax suspensions may continue to see some insulation from broader market pressures, but the overall picture remains fluid.”
OIL MARKET DYNAMICS
Oil prices pulled back to start the week despite a dramatic weekend escalation in the Strait of Hormuz, where Iranian naval mines struck two supertankers in the mandatory shipping lanes, collapsing throughput by 86% in 72 hours and briefly pushing WTI above $101 per barrel. The retreat came after President Trump waived new Russia sanctions Friday and announced a deal to bring Russian diesel to the U.S., easing one supply risk even as the Hormuz situation deteriorated, with Polymarket traders pricing the odds of no Hormuz agreement by October 23rd at roughly 96%. In early Monday trade, WTI was down 80 cents to $100.61 per barrel, holding above the psychologically key $100 level despite the pullback from last Monday’s $93.62, while Brent fell $1.56 to $108.30 compared to $106.62 a week ago, with the strait recording just two vessel transits on October 11th against a pre-crisis baseline of 85 per day. “Oil flows from the Middle East have remained resilient despite an increase in attacks on vessels crossing the Strait. Concerns over potential additional supply disruptions keep prices supported,” added Giovanni Staunovo, UBS commodities analyst, via email.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending October 9, 2026, showed U.S. commercial crude oil inventories fell by 8.6 million barrels and are about 3% below the five-year average for this time of year, while the SPR was unchanged at 283.0 million barrels. Gasoline inventories rose by 3.5 million barrels and are about 4% below the five-year seasonal average, while distillate inventories fell by 2.5 million barrels and are about 12% below the five-year seasonal average. Refinery utilization rose 0.8 percentage points to 93.5%, while implied gasoline demand, the EIA’s proxy for retail demand, fell 362,000 bpd to 8.408 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 $4.19, $3.89, $4.09, and $4.29, rounding out the top five most common prices.
The median U.S. gas price is $4.09 per gallon, unchanged from last week and about 15 cents lower than the national average.
The top 10% of stations in the country average $5.86 per gallon, while the bottom 10% average $3.51 per gallon.
The states with the lowest average prices: North Carolina ($3.58), Georgia ($3.69), and Texas ($3.73).
The states with the highest average prices: California ($6.12), Hawaii ($5.55), and Washington ($5.33).
Biggest weekly changes: North Carolina (-25.5¢), Ohio (+18.9¢), South Carolina (-17.5¢), Delaware (-17.4¢), Michigan (-17.2¢).
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $5.99 per gallon, unchanged from last week, followed by $6.29, $6.39, $6.19, and $6.59, rounding out the top five most common prices.
The median U.S. diesel price is $6.19 per gallon, up 10 cents from last week and about 11 cents lower than the national average.
Diesel prices at the top 10% of stations in the country average $6.96 per gallon, while the bottom 10% average $5.52 per gallon.
The states with the lowest average diesel prices: North Carolina ($5.57), Georgia ($5.70), and Louisiana ($5.74).
The states with the highest average diesel prices: California ($8.47), Washington ($7.26), and Hawaii ($7.10).
Biggest weekly changes: North Carolina (-27.3¢), Colorado (+22.6¢), Arizona (+19.6¢), Florida (+19.2¢), New Mexico (+18.3¢).