The national average price for regular unleaded gasoline is set to hit $4 per gallon for the first time since 2022, according to RSM US chief economist Joe Brusuelas. This is a significant threshold that carries implications for the US economy. A $4 gallon of gas would be welcome in California, Washington state, or Hawaii, while other states with lower cost of living are paying under $3.50 per gallon. An increase in oil prices equates to about a 0.3 percentage point knock on real GDP growth, but this could increase over time. This could lead to "demand destruction," where prices become so high that consumers change their behavior and reduce spending. The inflation rate could also increase, even if the war were to end soon.