Severin Borenstein

U.S. gas prices have increased to an average of $4 per gallon, a 13-cent rise in a week, according to AAA. The increase is linked to escalating tensions with Iran, as analyzed by UC Berkeley's Haas School of Business professor Severin Borenstein.

President Donald Trump promoted the Freedom Fuel Network, a gas station chain in Pennsylvania and New Jersey offering initially lower prices before raising them to $3.57 per gallon. The White House endorsed the initiative, but experts suggest the price reduction is a short-term marketing tactic with limited broader impact on gas prices.

Gas prices in California remain above the national average, with Chevron stations charging significantly more than unbranded stations. A state investigation highlights a price gap between branded and unbranded retailers, while a federal lawsuit accuses Kalibrate and major retailers of using algorithms to maintain high prices. The debate over market practices continues as the state reviews its gas-price oversight laws.

Gas prices have risen from under $3 to nearly $4.50 since February, prompting Congress to consider suspending the federal gas tax for the first time. Proposals from Democrats Mark Kelly and Richard Blumenthal, Republican Josh Hawley, and others face opposition, highlighting the gas tax's declining relevance despite its role in funding infrastructure. Experts argue pausing the tax would worsen infrastructure funding crises without significantly lowering prices.