National average gas price falls below $4 a gallon as Independence Day travel surges
U.S. drivers are seeing some relief at the gas pump just as the busy summer travel season ramps up, with the national average price for regular gasoline dropping below $4 a gallon for the first time in nearly three months.
According to AAA, the national average price for a gallon of regular gasoline fell to $3.999 on Thursday, down from $4.129 a week ago and $4.515 a month ago. It marks nearly four consecutive weeks of declining prices as millions of Americans prepare to hit the road for the Independence Day holiday.
The decrease comes as crude oil prices ease following a diplomatic agreement between the United States and Iran to reopen the Strait of Hormuz, a key global shipping route for oil exports. Lower crude oil prices have helped reduce fuel costs nationwide.
Despite the decline, gasoline prices remain significantly higher than a year ago, when the national average stood at $3.188 per gallon.
Meanwhile, demand for gasoline increased last week as summer travel activity intensified. New data from the U.S. Energy Information Administration showed gasoline demand rose from 8.73 million barrels per day to 9.21 million barrels per day. Domestic gasoline inventories fell from 215.1 million barrels to 214.2 million barrels, while production increased to an average of 10.1 million barrels per day.
Oil markets also reflected tightening supplies. West Texas Intermediate crude oil rose 74 cents Wednesday to settle at $76.79 per barrel. The EIA reported U.S. crude oil inventories declined by 8.3 million barrels last week to 418.2 million barrels, about 6% below the five-year average for this time of year.
California continued to have the nation’s highest average gasoline price at $5.64 per gallon, followed by Hawaii at $5.57 and Washington state at $5.43. Indiana posted the lowest average price at $3.39 per gallon, ahead of Texas at $3.49 and Oklahoma at $3.50.
Electric vehicle drivers also saw modest savings. AAA said the national average cost of electricity at public EV charging stations fell by one cent over the past week to 41 cents per kilowatt-hour.
Among states, West Virginia had the highest public charging rate at 52 cents per kilowatt-hour, while Kansas offered the lowest average rate at 30 cents.
AAA expects record numbers of travelers to take to the roads for the Independence Day holiday period beginning next weekend, and current fuel prices could provide some financial relief for motorists planning long-distance trips.
Drivers can track current gasoline and electric vehicle charging prices along their routes through AAA’s TripTik Travel Planner.
