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Gas Prices Reach $4 Gallon, Threatening Household Budgets

7/20/2026

32 6 Full Breakdown

Summary

Story summary

Average regular gasoline price reached $4 per gallon, up 13 cents, with California at $5.49.
Rising gas prices strain households burdened by rent and groceries, while refineries at full capacity push margins higher.
U.S. President Donald Trump said prices are falling as crude rose above $90 a barrel and diesel hit $5.11 gallon.
Federal Reserve Chair Kevin Warsh warned fuel costs threaten households and urged policies to cut gasoline use.

History

Historical Context

During the October 1973 OAPEC oil embargo—prompted by U.S. arms shipments to Israel—President Richard Nixon signed the Emergency Petroleum Allocation Act and later created the Strategic Petroleum Reserve. The embargo lifted U.S. gasoline prices by 43% (from 38.5¢ to 55.1¢ per gallon). Today’s $4-per-gallon surge and President Donald Trump’s price-drop claim echo that 1973 supply shock.

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Story summary

Average regular gasoline price reached $4 per gallon, up 13 cents, with California at $5.49.
Rising gas prices strain households burdened by rent and groceries, while refineries at full capacity push margins higher.
U.S. President Donald Trump said prices are falling as crude rose above $90 a barrel and diesel hit $5.11 gallon.
Federal Reserve Chair Kevin Warsh warned fuel costs threaten households and urged policies to cut gasoline use.

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