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Gas prices have been trending higher since the start of the war with Iran, but the change over the past week has been striking. Seven days ago, a gallon of regular fuel averaged $4.17 in the U.S., and today it has ballooned to $4.48. Those prices hit all of us at the pump, but related diesel and aviation fuel cost increases ripple through many other parts of our daily lives. 

Consumers now spend around a billion dollars more per day on fuel than before the war, with about half of that attributable to jet fuel and diesel prices. Spirit Airlines shut down over the weekend, citing rising fuel prices as one of the contributing factors, and other airlines are canceling flight routes or raising prices to cope. 

Higher diesel prices hit shipping industries hard, making consumer goods like groceries and electronics more expensive. You may have noticed the impact if you’ve recently tried to ship a car, as most national carriers rely on large diesel trucks to move vehicles across the country.

Despite a ceasefire announcement, traffic through the Strait of Hormuz remains almost nonexistent. The channel, which carries more than a fifth of the world’s oil supplies, handled just 19 ships last Friday, down from over 100 per day before the war. 

As depressing as this sounds, it’s not doom and gloom for everyone. Average gas prices have yet to crest the $4/gallon mark in parts of the South, including Georgia, where a gallon of regular currently averages $3.91. There’s more good news for drivers in the Midwest, with GasBuddy recently reporting on Threads that refinery issues have begun clearing, which could drive fuel prices down by up to $0.60 per gallon in some places.

That said, the West Coast has been hit hard, with gas prices averaging $6.13 per gallon in California, according to AAA. If you live in one of the areas where fuel prices have become untenable, check out Kelley Blue Book’s fuel-saving tips to help get ahead of rising costs. 

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South Korea car maker Hyundai has officially launched and priced its latest performance EV – the Ioniq 6 N – which it says is first ever car from the brand, electric or fossil, that has been equipped with “full wings” to keep it stable on and off the track.

The Ioniq 6 N is now able to be ordered at a single variant price of $115,000 before on roads, with some changes depending on the chosen colour, and a free sunroof “delete”, which might be advisable if the owner thinks they will want to spend a lot of time wearing a helmet on the track.

The N series is a critical part of Hyundai’s plans to help its loyal customers – and others – make the transition from petrol and diesel options to full electric drivetrains. Now is the right time: the company says one in five buying queries in Australia have been focused on its electric lineup, particularly since Middle East war caused fuel prices to surge.

The Ioniq 6 electric sedan distinguished itself at its launch a few years ago by NOT looking like a Hyundai, and featured interesting lines that might not have been out of place in late 20th century Italian sports cars.

It quickly found a niche and has sold more than 1,200 units in Australia to date. Now the Ioniq 6 has been upgraded as an “ultra-high performance” vehicle, complete with a full “swan-neck rear wing” – Hyundai says it is the first of its cars to have one – and even elective engine noises.

“The Ioniq 6 N is the latest expression of Hyundai’s commitment to raising the bar in high performance EVs,” said Hyundai Australia’s chief operating officer Gavin Donaldson.

He says it brings together “exhilarating agility, driver engagement and everyday practicality in a compelling sports sedan.”

The importance of the performance model is reflected in its experience with the highly regarded Ioniq 5, its electric SUV, which sold 3,375 units from 2022 to 2026.

Since the launch of its own N version in 2024, nearly one in five sales have been for the performance version: The standard Ioniq 5 has sold 1,364 units, with the Ioniq 5 N attracting 308 buyers.

Hyundai says the N series has a “three pillar” philosophy that it divides into Corner Rascal, Racetrack Capability and Everyday Sportswear. It has required significant upgrades on the standard Ioniq 6 offering.

These include wide fenders and other aerodynamic additions that deliver a relatively low 0.274 co-efficient of drag. Body rigidity is optimised through additional weld points, increased application of structural adhesives, and additional reinforcements.

It also features an advanced braking system, intelligent controls to support both daily driving and track  use, while maximising energy recovery.

Inside the cabin are N lightweight sports seats, an exclusive N Pasubio steering wheel featuring customisable N1/N2 buttons, N-exclusive metal pedals, and an N knee support pad.

The Ioniq 6 produces 478kW and 770Nm, accelerating from 0 to 100 km/h in 3.2 seconds (using N Launch Control). It features an 84 kWh battery that delivers WLTP range of 487 km.

Giles Parkinson is founder and editor of The Driven, and also edits and founded the Renew Economy and One Step Off The Grid web sites. He has been a journalist for nearly 40 years, is a former business and deputy editor of the Australian Financial Review, and owns a Tesla Model 3.

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The US electric vehicle market has had a rough stretch. Federal EV tax credits disappeared, supportive policies were rolled back, and overall EV sales dropped by around 27 percent year-over-year in the first quarter of 2026, according to Cox Automotive estimates. Then the conflict with Iran hit, and geopolitical tensions pushed oil prices higher. That single shift in what people pay at the pump appears to be influencing buyer behavior—at least in the short term. Hyundai Motor Company CEO José Muñoz told Bloomberg that the company’s US EV sales grew by 40 percent between February and March, and he pointed squarely at rising fuel costs as the reason.

Hyundai’s Numbers Tell the Story

The jump comes off a relatively soft February, highlighting how quickly demand can swing with fuel prices. The Ioniq 5 crossover alone sold 4,425 units in March, up 27 percent from the month before, making it the second best-selling EV behind Tesla models in the country for the first quarter. The larger Ioniq 9 did even better, jumping from 505 to 905 units in the same period. These are meaningful numbers for a brand that has one foot firmly in the EV market while several competitors have retreated.

What Comes Next for the EV Market

Muñoz acknowledged that the industry’s earlier optimism, the idea that EVs could hit 50-60 percent US market share by the end of the decade, no longer looks realistic. He expects something closer to 10 to 15 percent market share, which he described as enough to stay committed to the technology. Car-buying platforms like Edmunds have noticed increased interest in electric options since the Iran war began, and a recent survey found nearly a third of Americans say they would seriously consider an EV for their next vehicle. 

The used EV market is also seeing a lift, and the timing is almost accidental. Years of aggressive EV leasing and a wave of early adopters trading up have pushed a large supply of used electric cars into dealerships at exactly the right moment. It brings accessible price points to buyers eager to switch, but who were previously priced out of the new car market. For an industry searching for its next catalyst, the answer may be as simple and volatile as the price of fuel.

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Quick Facts About New Car Prices

• The pace of national sales remained relatively stable year over year on an adjusted basis and improved month over month.
• The February new-vehicle market showed signs of recovery after a slow January, but uncertainty over the war in the Middle East will likely shift consumer sentiment from March onward.
• Cox Automotive’s Erin Keating says that vehicles in the $35,000 to $45,000 range better absorb demand and maintain leverage. Mid-market vehicles ($45,000 to $55,000) continue to carry excess supply and face margin risk. 
• For buyers, the situation hasn’t changed dramatically. Prices are still seeing steady, modest increases, but incentives can help ease the burden.

If you’re in the market for a new vehicle, prices remain high. In February, the new-vehicle average transaction price (ATP) was $49,353. Higher ATPs suggest that buyers are selecting more expensive versions from available vehicle inventory. Sales incentives did show a modest increase in February, but remained relatively flat compared to this time last year. Instead of marketing broadly, manufacturers and dealers are using incentives to address specific pockets of inventory.

In February, incentives were strongest for luxury vehicles and compact SUVs, so buyers in those markets may find favorable offers. Otherwise, the situation for new vehicles has not changed dramatically. The story taking shape in the pricing landscape is about pricing bands rather than overall averages. When you remove pricey full-size pickups from the equation, the average is closer to $39,000.

With conflict overseas affecting U.S. fuel economy, we’ll also see rippling effects in other areas of life. With costs rising across the board, consumer sentiment toward new vehicles could cool in the coming months. What does that mean for car buyers right now? Read on for expert insights into what’s driving the current trends and what you need to know if you’re planning to start your search or buy a car now. 

New Car Prices Continue Modest Increases

Sales slowed in January of this year, but saw some recovery in February. The new vehicle average transaction price (ATP) was $49,353 in February, up 0.3% from January’s average and up 3.4% year over year. “A 3.4% ATP increase in February stands out, but it’s not out of character when you put it in context,” explained Cox Automotive Executive Analyst Erin Keating. “Outside of the ‘everything was broken’ phase, when prices were rising at a 13% clip, the industry’s long‑run average is closer to 3%. What we’re seeing now looks more like normalization than a new pricing problem.”

Incentives increased modestly in February, with an average incentive package equal to 6.9% of ATP. This was an increase from 6.5% in January. Last year at this time, the average incentive package equaled 7.0% of ATP. “Softening sales have not forced widespread discounting. Instead, manufacturers and dealers respond selectively, using incentives to address specific inventory pockets rather than the market broadly,” said Keating.  

“February reflects a bifurcated market weighed down by mismatched supply and demand. National metrics remain stable, inventory is leaner year over year, and pricing discipline is intact,” said Keating. “But beneath the surface, the mainstream market struggles against inventory imbalances it has yet to fully resolve.”

It’s important to remember that volume-weighted ATP reflects all market realities, including high-volume vehicles like pricey pickup trucks, which can influence the number. For example, full-size pickups averaged $66,157 in February, a 2.9% year-over-year increase. “Not every vehicle is a $50,000 purchase,” reminded Keating. “Most of the volume still sits in segments priced below the industry average. The top five segments come in at around $44,000 on a weighted basis, and pickups account for a big share of that. Remove expensive full-size pickups, and the average is closer to $39,000, which tells a very different affordability story.”

The Electric Landscape Continues to See Headwinds

Electric vehicle (EV) sales continue to meet rougher waters, totaling an estimated 68,951 units. This number is down 26.8% year over year but is up 5.8% month over month, with EVs accounting for 5.8% of total new vehicle sales. Tesla headed the pack with 38,500 units sold, 4% lower than January. Hyundai, Chevrolet, Toyota, and Cadillac followed it.

Inventory levels tightened from January, and prices were pushed lower across both new and used segments, highlighting a market increasingly driven by affordability and demand alignment. Days’ supply for new EVs fell to 130 in February, down 27% month over month but remaining 23.7% above this time last year. Ford and Chevrolet held the heaviest supply, while Toyota and Mercedes‑Benz showed leaner inventory levels.

February underscored the EV market’s new reality, with new EV sales sharply lower year over year and used EV momentum continuing to build. Inventory levels tightened from January and prices were pushed lower across both new and used segments, highlighting a market increasingly driven by affordability and demand alignment. EV prices edged higher to an estimated $55,300 in February, down 1.4% year over year. February also saw the narrowest EV premium over ICE+ on record, at $6,532. Incentives reached an average of $7,870 or 14.2% of ATP, up from 12.4% in January. Tesla and Kia posted month-over-month EV ATP gains, but Cadillac, Ford, and Chevrolet recorded the largest declines.

“As the EV market enters the spring selling season, it appears to be moving through an ongoing normalization phase, with manufacturers and retailers still working to identify sustainable, natural demand levels,” said Cox Automotive Director of Industry Insights Stephanie Valdez Streaty. “A wave of new EV launches in 2026 could broaden consumer choice and support volume growth beyond the current top brands. Rising gasoline prices may also increase consideration for EVs among shoppers weighing total cost of ownership.”

What Drives New Car Prices

New Car Inventory Update

Dealerships track the number of new vehicles they have on hand to sell using a metric called “days’ supply,” or how long it would take them to sell out at today’s sales pace if they stopped adding new vehicles. According to Cox Automotive’s vAuto Live Market View, new-car inventory is showing a widening divide according to price band. Vehicles priced between $35,000 and $45,000 are outperforming the market, and carry the least inventory at about 81 days’ supply. Toyota and Honda have the tightest days’ supply at 41 days and 59 days, respectively. Nissan at 98 days and Kia at 89 days round out the most competitive manufacturers when it comes to pricing power, as dealers demand more stock from them, not less.

In contrast, the $45,000 to $55,000 range represents the mid-range band and the weakest inventory efficiency, with an average supply of about 120 days. Ford and Jeep sit at 121 days and 151 days, respectively. Jeep’s days’ supply has grown to 151 days from 123 days, an increase of 28 days year over year.

“Vehicles in the $35,000 to $45,000 tier absorb demand and maintain leverage, while the mid-market tier carries excess supply and faces margin risk,” said Keating. “For dealers, February’s lesson is less about volume and more about alignment. Where inventory matches real demand, the market functions well. Where it does not, adjustment is underway and will likely accelerate as spring demand either materializes or fails to arrive.”

What does this mean for shoppers? With cars in the lower band seeing significantly lower inventory levels, it may be harder to find them in your area and dealers may drive a harder bargain due to competition. It may be tempting to raise your budget or pursue different financing options in the face of these challenges, but we urge caution before doing so. Search for incentives and expand your shopping boundaries to find the right deal for your budget. Low-interest-rate offers and lease deals may be available for qualified buyers as dealerships continue to make room for newer inventory. 

Shop Around for the Best Offer on Your Trade-in

Trade-in value is another factor driving car prices. A lack of used-vehicle stock has kept those prices higher, giving credence to the idea that buying a new vehicle can sometimes be cheaper than purchasing a certain used model, only a few years old. As a result, it’s still a great time to trade in your car. 

Dealers value your trade-in partly based on what they need in stock, so if you have a popular model, you may be in luck. On the other hand, they’re more likely to offer an excellent deal to buyers on a car that fewer people are currently looking for. In other words, a car shopper trading a 2018 Honda Civic for something else will be much happier with the trade-in appraisal than a shopper with a 2021 Jeep Grand Cherokee. 

Car buyers should prepare to shop their trade-in around. It’s slightly more complicated to pull off, but selling your old vehicle to one dealership and buying your new car from a different one may make sense if the final invoice numbers work out in your favor. Use the Kelley Blue Book Instant Cash Offer tool to shop your trade-in vehicle at nearby dealerships. When you let the deals come to you, selecting the best trade-in offer for your situation is easier. Remember, you can always negotiate the offer, and pitting one offer against the other is not unheard of when shopping around for a vehicle. 

The Higher Costs of Car Insurance

Tariffs on imported cars and car parts have pushed insurance rates higher, even as car owners are already stretched to the limit by insurance costs. However, this sharp upturn in cost slowed in February. According to the Bureau of Labor Statistics, car insurance costs were 0.2% higher in February than a year earlier. By comparison, in September of last year, these rates were 3.1% higher year over year. Bankrate says the average cost of car insurance is $2,697 per year for full coverage. Full coverage, called comprehensive car insurance, covers natural disasters like wildfires, hurricanes, floods, and accidents. Before you seal the deal and sign anything for a new vehicle, compare quotes for car insurance. 

What to Expect: Looking Ahead

New car inventory in February rose 2.4% month over month but is down 1.6% year over year. Early February numbers showed the number of available new vehicles in the U.S. hitting 2.85 million units, or 92 days’ supply. This is a 4.4% year-over-year supply decline, but an inventory volume increase of 4.1% month over month (from 2.74 million units). These trends align with a typical seasonal pattern as dealers build inventory in anticipation of higher springtime demand.

Automakers still contend with tariffs, and now, an intensifying conflict across the Middle East, suggesting a continuing need to balance steady inventory management with smart pricing. This is easier said than done as the market contends with stubborn inventory imbalances.

For buyers, the situation has not shifted significantly one way or another. Options in lower pricing bands remain limited, though careful shoppers can still locate incentives that can help lighten the financial burden. The coming months will reveal more about the war’s overall impact.

RELATED: Bad Credit Car Loans: Everything You Need to Know

What to Do if You Need a Car Now

Incentives are a buyer’s best friend in this current market. If you can adjust your expectations about the type of car or brand you are willing to buy, there may be some good deals available. Beyond that, prices remain on a steady, modest increase. Before buying: 

• Research your options and expand your boundaries if needed.
• Look for deals and incentives, especially on inventory that dealers may be trying to offload to clear room for newer incoming models.
• Shop ahead for a car loan if you’re not paying cash.

RELATED: Paying Cash for a Car: Consider the Pros and Cons

Editor’s Note: This article has been updated since its initial publication.

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California drivers are once again paying the highest gas prices in the nation, and the numbers are getting hard to ignore.

As of this week, the statewide average for a gallon of regular unleaded has surged to $5.84, according to AAA data. That puts California drivers nearly $2 above the national average of $3.93, a gap that has widened dramatically over the past month.

In Los Angeles County alone, prices are pushing toward $6 a gallon, with some downtown LA stations already charging close to $9 per gallon for regular grade.

California’s average has climbed more than 80 cents in just the past month, and the trend shows no signs of reversing quickly.

Why California Pays So Much More

The reasons California gas prices stay elevated above the rest of the country come down to a few compounding factors.

1. The state runs on a specially formulated fuel blend required by the California Air Resources Board, which costs more to produce and limits how much supply can come from out-of-state refineries.
2. On top of that, California’s state tax on gasoline sits at 61.2 cents per gallon, one of the highest in the country alongside additional fees tied to the state’s cap-and-trade and Low Carbon Fuel Standard programs.

Then there’s the global picture. The ongoing conflict in the Middle East has rattled oil markets, with disruptions near the Strait of Hormuz, a critical shipping lane for global oil supply, sending crude prices higher and filtering directly into what drivers pay at the pump.

How High Could Prices Go?

Energy analysts are not ruling out further increases. Some experts have pointed to a scenario where California prices could push toward $10 per gallon if the conflict escalates and crude supply tightens further. That may sound extreme, but California has come close before; the statewide record sits at just over $6.40 a gallon, set in October 2022.

For now, drivers are adapting. Lines at Costco gas stations have been reported across the state as motorists search for any savings they can find. Others are only partially filling their tanks, hoping for relief that experts say is unlikely in the short term.

The bottom line for California drivers this week: fill up strategically, check GasBuddy before you stop, and brace for prices that may not come down soon.

Source: AAA, Auto Club of Southern California, California Energy Commission

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Fuel spending is one of the most significant ongoing costs for today’s vehicle owners. Prices can fluctuate daily and vary widely from state to state, making it hard to know whether you’re getting the best deal. To help, we’ve assembled expert-backed articles and tips for boosting your fuel efficiency, gathered useful resources for tracking the best fuel prices locally and nationally, and included a handy search tool for fuel-economy estimates from the U.S. Department of Energy and the Environmental Protection Agency. Let’s get rolling.

Jump to today’s gas prices.

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Source: Data provided by fueleconomy.gov (U.S. EPA).
Results may vary based on specific trim and options. Actual mileage will vary with driving conditions.

Smart Fuel Savings Strategies

Driving Habits That Save Fuel

Avoid rapid acceleration and hard braking. Smooth, gradual speed changes can improve fuel economy by up to 40% in stop-and-go traffic.

Use cruise control on highways to maintain consistent speed. Each 5 mph over 50 mph reduces fuel economy like paying an extra $0.30 per gallon.

Turn off your engine if you’ll be stopped for more than 60 seconds. Idling wastes fuel and costs you money without moving an inch.

Remove unnecessary items from your vehicle. Every extra 100 pounds can reduce fuel economy by up to 2% depending on vehicle size.

Keep Your Vehicle in Top Shape

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  Check tire pressure monthly – Properly inflated tires can improve gas mileage by up to 3%
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  Replace air filters regularly – A clean air filter can improve acceleration and protect your engine
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  Use recommended motor oil – The right grade reduces friction and can improve fuel economy by 1-2%
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  Get regular tune-ups – A well-maintained engine runs more efficiently and saves fuel
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  Fix oxygen sensor issues – A faulty sensor can reduce mileage by up to 40%

Find the Best Gas Prices

Download gas price tracking apps to compare local stations in real-time. Many offer user-reported prices updated within the hour.

Gas prices typically rise on Thursdays and peak on weekends. Monday through Wednesday often offers the lowest prices of the week.

Sign up for station rewards programs and use affiliated credit cards. Many offer 5-10 cents per gallon in savings or cashback.

Membership warehouse stores often sell gas at lower prices than traditional stations. The savings can quickly offset membership costs.

Pro Tip: Plan Your Routes

Combine errands into one trip and plan the most efficient route. Multiple short trips from a cold start can use twice as much fuel as a single trip covering the same distance. Apps with real-time traffic can help you avoid congestion and save fuel.

National Average Gas Prices

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The Solution to Rising Car Prices

A report from Reuters says the Trump administration’s top auto policy officials are seeking to lower vehicle prices by scaling back emissions regulations. This aligns with the fact that average new car prices surpassed $50,000 in December 2025.

Despite what some view as opposition to electrified vehicles, Transportation Secretary Sean Duffy said the market should not depend on “government policy to encourage EV purchases while penalizing combustion engines.” That regulatory tilt was evident in recent automaker product strategies, with Dodge – a brand long associated with muscle cars – going so far as to discontinue the gas-powered Charger as the nameplate transitioned to a new generation initially led by an all-electric version.

The Policy Winds Change Direction

At the same time, combustion-powered vehicles appear to be regaining momentum, highlighted by the return of models such as the 777-horsepower Ram 1500 TRX. The shift follows policy changes under the current administration, including the elimination of the $7,500 federal EV tax credit and the removal of penalties tied to fuel-efficiency requirements. Even California – long viewed as a leader in EV adoption – saw its plan to phase out new gasoline-powered vehicle sales by 2035 rescinded.

Environmental Protection Agency (EPA) head Lee Zeldin reiterated that view, arguing the government “should not be forcing, requiring, mandating that the market go in a direction other than what the American consumer is demanding.”

So how can easing emissions regulations affect car prices? One factor is that automakers must invest in additional hardware to meet emissions rules and avoid penalties. This often includes electrified components such as electric motors that form part of hybrid systems. While these technologies improve fuel efficiency and performance – by operating in parallel or in series with an engine, as seen in Nissan’s e-Power system – they also add complexity and cost to vehicles.

The Market’s Verdict So Far

The shift in EV policy may have weighed on brands such as Tesla, but overall U.S. new-vehicle sales still reportedly rose 2.4% in 2025 to 16.2 million units. U.S. Trade Representative Jamieson Greer added that the removal of EV incentives and the introduction of new tariffs are “not really getting down to the consumer,” suggesting that lower vehicle prices could still materialize.

The report also noted that the EPA is expected to finalize a rule in the coming weeks that would remove federal tailpipe emissions mandates.

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