The average retail price of regular gasoline in the US was $3.58/gal on May 20, 2024—the Monday before Memorial Day—a 1% increase from the same time last year, according to the US Energy Information Administration (EIA). After adjusting for inflation, the price was 2% lower than last year's average going into the Memorial Day weekend.
The American Automobile Association (AAA) projects that 38.4 million people will travel by car over Memorial Day weekend, a 4% increase from last year and nearly 2% more than in 2019.
Gasoline prices have been on the rise since the beginning of the year due to higher crude oil prices, refinery outages and maintenance occurring earlier than usual, and the seasonal shift to more expensive summer-grade gasoline.
Brent crude oil prices climbed 20% to a peak of $91/bbl on Apr. 5 from $76/bbl on Jan. 2. Middle East tensions, including Houthi attacks on ships in the Red Sea and military actions between Israel and Iran, have contributed to this increase by raising concerns about crude oil supply disruptions. Additionally, voluntary production cuts by OPEC+ have reduced global oil inventories, further driving up crude oil prices.
However, over the past 5 weeks, easing Middle East tensions and increased refinery activity have led to a 2% drop in average retail gasoline prices, according to EIA. Nevertheless, ongoing instability in the region could still affect market conditions and create uncertainty about future gasoline prices.
Regional gasoline prices
US gasoline prices vary regionally, usually the highest on the West Coast. On May 20, West Coast prices averaged $4.62/gal, down 1% in real terms from this time last year.
Gasoline prices on the Gulf Coast, home to more than half of US refining capacity, are usually the lowest of any US region. Gulf Coast states also have lower gasoline taxes than the national average. Gulf Coast prices on May 20 averaged $3.11/gal, down 1% from this time last year.
On the East Coast, which has the most gasoline demand of the five regions, retail gasoline prices averaged $3.48/gal, down less than 1% from 2023.
In the Midwest and Rocky Mountains, prices were lower compared with last year. Midwest prices averaged $3.43/gal, a 4% decrease from the previous year, while Rocky Mountains prices averaged $3.43/gal, down 7% from 2023.