US gas prices average $4.27 as diesel nears record, AAA says

Key takeaways

• US gas prices remain far above last year: AAA put the national average for regular gasoline at $4.27 a gallon on October 22, 2026, up about $1.20 (39%) from a year earlier.
• Diesel averaged $6.31, up about $2.68 (74%) year on year and close to the all-time high of $6.53 that AAA recorded on September 22, 2026.
• Gasoline rose 9.1% in September and accounted for more than half of that month's 0.6% increase in consumer prices, according to the Bureau of Labor Statistics.
• Brent crude rose to its highest level since May on October 22, according to the Associated Press, which points to more pressure on fuel costs.
• Food banks in Detroit and California told Reuters that fuel costs are cutting into their budgets while demand rises, less than two weeks before the November 3 midterm elections.

How high are US gas prices right now?

US gas prices remain far above last year's levels: AAA put the national average for regular gasoline at $4.27 a gallon on October 22, 2026, up about $1.20 from a year earlier. Diesel averaged $6.31, close to its all-time high of $6.53. Fuel costs are pushing up travel prices as well; see why airfares are going up.

The weekly survey from the US Energy Information Administration (EIA) shows the same picture. For the week of October 19, regular gasoline averaged $4.284 a gallon nationally, down 4.7 cents on the week. On-highway diesel averaged $6.276, up 9.7 cents on the week and $2.656 higher than a year earlier.

Source: AAA national averages. Percentage changes are calculated by Bullquill from the AAA figures.

Prices vary widely by region. In the EIA survey, regular gasoline averaged $5.557 on the West Coast and $3.784 on the Gulf Coast. West Coast diesel averaged $7.394 a gallon.

Why are fuel prices so high?

The main driver is crude oil. Al Jazeera, citing AAA, reported that the national average was $2.98 a gallon in late February, when the United States and Israel first struck Iran. NBC News reported that the conflict led to the closure of the Strait of Hormuz, a key route for oil shipments. It also linked the sharper rise in diesel to Ukrainian strikes on Russian refineries, which have taken refining capacity offline.

On October 22, the Associated Press reported that Brent crude, the international benchmark, rose 2.2% to $111.19 a barrel (AP update at 16:22 UTC), its highest level in five months. According to AP, Brent has traded between $97 and $112 this month because of uncertainty over when the war with Iran will allow the energy industry to return to normal. Pump prices usually follow crude with a lag, so a further rise in oil can slow the recent small decline in gasoline prices. For more on the crude market, see our oil daily brief and our report on the state of US talks with Iran.

How fuel feeds into inflation

Energy is now the largest source of inflation pressure in the United States. According to the Bureau of Labor Statistics (BLS), the Consumer Price Index rose 0.6% in September and 3.7% over the year. The gasoline index rose 9.1% in the month and 34.2% over the year, and the BLS said gasoline accounted for over half of the monthly increase. Consumer mood has slumped too: University of Michigan sentiment fell to 48.0 in October, the second-lowest reading on record.

Core inflation, at 2.6%, is much lower than the headline rate. That gap shows how much of the current price pressure comes from fuel. It also matters for interest rates: NBC News reported that higher oil and gas prices could lead the Federal Reserve to raise rates again this year. Our explainer on the Fed's October meeting looks at that debate.

Wages have not kept up. Al Jazeera, citing the latest Labor Department data, reported that average hourly earnings rose 3% over the past year, compared with 3.7% for consumer prices. That means real, or inflation-adjusted, pay has fallen for many workers.

What households report

Surveys show that the pressure reaches beyond the pump. A Pew Research Center survey released in October, cited by Al Jazeera, found that 44% of Americans struggled to pay for at least one basic need over the past year, such as transportation, housing, medical care or food. In the same survey, 20% said they had received food from a food bank or pantry.

Al Jazeera also reported that the Conference Board's latest consumer confidence survey found higher-income households more optimistic than those in lower income groups. Fuel takes up a larger share of spending for lower-income families, so price increases hit them harder.

Food banks pay more for fuel as demand rises

Food banks face both problems at once: higher transport costs and more people asking for help. Reuters reported on October 22 that Focus: HOPE in Detroit now delivers 1,300 food boxes a month to low-income seniors, up from 800 at the start of the year. Many seniors on fixed incomes can no longer afford the fuel to reach pickup sites.

In California, the Central California Food Bank told Reuters that its diesel spending rose 61% from July through September compared with a year earlier. The food bank said that money could have paid for about a quarter of a million meals. Its co-CEO also said donors are "being pinched at the pump," with small gifts of $25 to $250 hit hardest. According to Reuters, some retailers that once paid to transport donated food now share that cost or ask food banks to cover it. A spokesperson for the Greater Chicago Food Depository told Reuters it is moving toward cheaper foods, such as eggs, to offset fuel costs.

Reuters also reported that more than 4.7 million people have lost Supplemental Nutrition Assistance Program (SNAP) benefits since the administration's main tax and spending law took effect last year. That has added to demand at food banks.

The midterm backdrop

Cost of living is the top issue for many voters ahead of the November 3 elections. According to Al Jazeera, a Reuters/Ipsos poll found that 47% of respondents named cost of living as their most important issue, compared with 22% for democratic norms and values. A Washington Post–ABC News–Ipsos poll, also cited by Al Jazeera, found voters trusted Democrats over Republicans on the economy by 40% to 33%, the first such Democratic lead in 12 years.

Both parties are making fuel costs part of their message. In Michigan's Senate race, Reuters reported, Democrat Abdul El-Sayed is campaigning on cost of living and healthcare, while Republican Mike Rogers has called for suspending state and federal gas taxes. For other issues shaping the vote, see our coverage of early-vote campaigns and protests.

What it means

For households, fuel is acting like a tax that falls hardest on lower-income families, rural drivers and people who rely on charities. The small fall in gasoline prices since September may not last if crude stays above $110. Diesel matters even more for the wider economy, because it raises the cost of moving food and goods.

For policymakers, the data creates a difficult mix: headline inflation pushed up by energy, weaker real wages and cuts to food assistance, all just before an election. The next data points to watch are the EIA's weekly fuel survey on October 27 and the October Consumer Price Index, which the BLS will publish on November 10, a week after the vote. How long the conflict with Iran keeps oil supplies tight has not been settled, and that remains the main unknown for prices at the pump.

Sources

• AAA — Gas Prices, national averages (October 22, 2026)
• US Energy Information Administration — Gasoline and Diesel Fuel Update (week of October 19, 2026)
• US Bureau of Labor Statistics — Consumer Price Index, September 2026
• Al Jazeera — Rising costs and tight budgets strain Americans ahead of midterm elections
• Reuters (via Yahoo News) — High gas prices strain Detroit's hungry and food banks ahead of midterm elections
• Associated Press (via BNN Bloomberg) — AI stocks drag markets down worldwide as oil prices climb to their highest since May
• NBC News — Oil surges to $110 for the first time since May

This article is for information only and is not investment advice.