Gas prices have set a record for the month of August, with the national average for regular gasoline hitting $4.10 a gallon and staying above $4 every single day this month, the first time that’s happened in August in the more than two decades AAA has tracked prices.
How This August Compares
August 2026’s monthly average of $4.06 a gallon has already surpassed the previous high-water mark for the month, $3.97, set back in 2022. Prices vary sharply by state: California has the nation’s highest average at $5.66 a gallon, followed by Hawaii at $5.45 and Washington at $5.13.
Why Prices Are Up Even Though Demand Is Down
Typical seasonal demand for gasoline is actually down this time of year, but crude oil prices have stayed elevated, hovering around $80 a barrel, driven largely by continued instability tied to the Strait of Hormuz and the broader Iran war, which has run for six months without resolution.
What It Means at the Pump
For a household filling up two vehicles a week, the gap between this August’s prices and 2022’s previous record adds up to real money over a month, on top of already-elevated grocery and housing costs households have been contending with this year. Analysts don’t expect meaningful relief until either crude prices ease or the underlying Gulf shipping disruption resolves, neither of which has a clear timeline.
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