Gasoline prices rose 27.4% over the 12 months ending August 2026, while overall consumer prices rose 3.4%, the Bureau of Labor Statistics reported. Strip out food and energy, and the increase was 2.4%.
The gap is largely a fuel story: Gasoline alone accounted for more than a third of August’s monthly increase in the index.
What the pump adds up to
The Energy Information Administration put the national average for regular at $4.465 a gallon for the week of Sept. 28, up from $3.118 a year earlier. That is $1.347 more per gallon.
Licensed drivers traveled an average of 13,735 miles in 2024, according to the Federal Highway Administration. A vehicle that gets 25 miles per gallon would burn about 549 gallons over that distance, which works out to roughly $740 more than the same driving cost a year ago.
The national inflation rate blends everyone’s spending together. A commuter with a long drive and a neighbor who barely leaves town share the same headline number and very different fuel bills. Drive farther or own a truck, and your figure climbs.
No quick relief at the pump
The EIA traces the spike to military action in the Middle East that began Feb. 28 and led to the de facto closure of the Strait of Hormuz. Brent crude opened the first quarter at $61 a barrel and closed it at $118.
On Sept. 28, Al Jazeera reported that Brent rose more than 3%, to nearly $108, after President Donald Trump rejected an Iranian proposal to reopen the strait. Iran had offered to reopen it and return to nuclear negotiations within seven days if the United States released frozen funds, lifted sanctions and ended its naval blockade.
The EIA’s September 2026 outlook projects regular gasoline averaging $3.35 in 2027, down from $3.84 in 2026. That forecast assumes flows through the strait increase gradually, and the agency expects export constraints from the Middle East to last through the end of this year. With the most recent offer turned down, the assumption is carrying a lot of weight.
Borrowing costs moved too
The Federal Reserve raised its target range by a quarter point to 3.75% to 4% on Sept. 16, saying inflation remains elevated. Most credit cards carry variable rates that tend to follow the Fed, so fuel charged to a card that is not paid off each month may now cost a bit more to carry.
Ways to claw some back
Cash back will not erase a $740 increase, but it is one of the few offsets that asks nothing of your driving habits. Upside is a free app that pays you real cash at stations you already use. Money Talks News has also rounded up other cash-back apps that can be used together.
Timing matters too. A GasBuddy analysis found Sunday is the cheapest day to fill up in 41 states, as detailed in this look at the cheapest day to buy gas in every state.
One driving cost is falling
The BLS motor vehicle insurance index fell 0.8% in August after declining 0.3% in July. It is a national measure, so individual renewals vary, but it marks one line of the driving budget where shopping around could pay off, and you can compare car insurance prices in a few minutes.
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