Gas Prices Dip Below $4, but Oil Volatility Threatens New Price Hikes Soon
by: GasBuddy
Published: April 20, 2026
BOSTON...The nation’s average price of gasoline has fallen 9.4 cents over the last week and stands at $3.97 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 3.9 cents from a month ago and is 87.4 cents per gallon higher than a year ago. The national average price of diesel fell 11.7 cents in the last week and stands at $5.50 per gallon.
“Average gasoline prices declined in 48 states over the last week, while diesel prices fell in 46 states, offering a welcome break at pumps, with the national average price of gasoline dipping below the $4 per gallon mark over the weekend,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “However, that relief may prove fleeting. Oil prices surged in Sunday night trading after Iran re-closed the Strait of Hormuz and President Trump signaled further escalation if Tehran does not come to an agreement. With global oil flows remaining at risk, renewed volatility is taking hold, and the continued back-and-forth is making any lasting resolution increasingly fragile. As a result, gasoline prices are likely to rise again in the days ahead, with diesel expected to follow if disruptions persist, and many of the states that exhibit price cycling could see increases in the next 24-48 hours.”
OIL MARKET DYNAMICS
Oil markets experienced another volatile week, but with a notable shift lower overall as easing geopolitical tensions—at least temporarily—helped unwind some of the risk premium that had driven prices sharply higher in prior weeks. After last week’s rebound amid doubts surrounding the ceasefire, markets appeared to gain slightly more confidence late in the week following statements from both the U.S. and Iran suggesting the Strait of Hormuz would remain open, easing immediate concerns over supply disruptions.
That confidence, however, is already being tested. New talks—and the risk they may break down—are again raising the potential for oil prices to climb in the days ahead. President Trump has warned Iran that further military action could occur if Tehran fails to reach an agreement, reintroducing uncertainty and pushing prices sharply higher to start the week.
The threat of escalations was pushing prices higher again in early Monday trade, underscoring the market’s sensitivity to headlines. WTI crude oil was up $4.98 per barrel to $88.83, but still well below last Monday’s $104.07 level, while Brent crude rose $4.65 to $95.03 per barrel, also down from $102.01 a week earlier. The rebound highlights how quickly sentiment can shift, even within a broader downward trend.
The decline over the past week underscores the market’s sensitivity to geopolitical developments, with prices continuing to swing as traders reassess both the likelihood and severity of potential supply disruptions. While some stability briefly emerged late last week, renewed rhetoric and uncertainty have quickly reversed that calm.
Looking ahead, markets are likely to remain highly reactive. While recent declines suggest some easing of immediate fears, the underlying risks remain firmly in place, and the continued back-and-forth is reinforcing volatility. Oil prices will likely continue to experience sharp swings as traders weigh the risk of escalation against the potential for a diplomatic resolution.
As Giovanni Staunovo, UBS commodities analyst, noted via e-mail, oil prices “continue to react primarily to escalation or de-escalation headlines. Intensifying strikes have pushed prices higher, while de-escalation headlines and hopes for the reopening of the Strait of Hormuz have weighed on them. For now, flows through the Strait remain restricted, with the market watching closely to see whether U.S.-Iran talks take place in Pakistan this week.”
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending April 10, 2026, showed U.S. oil inventories fell by 0.9 million barrels and are about 1% above the seasonal average for this time of year, while the SPR fell 1.7 million barrels to 413.3 million barrels. Gasoline inventories fell by 6.3 million barrels and are about 1% above the five-year seasonal average, while distillate inventories fell by 3.1 million barrels and are about 6% below the five-year seasonal average. Refinery utilization fell 2.4 percentage points to 89.6%, while implied gasoline demand, the EIA’s proxy for retail demand, rose 524,000 bpd to 9.088 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists was $3.79 per gallon, down 20 cents from a week ago, followed by $3.89, $3.99, $3.69, and $3.59, rounding out the top five most common prices.
The median U.S. gas price is $3.79 per gallon, down 10 cents from last week and about 18 cents lower than the national average.
The top 10% of stations in the country average $5.49 per gallon, while the bottom 10% average $3.35 per gallon.