Gasoline prices hovered near their lowest point in nearly four years as the July Fourth holiday began, offering welcome relief to travelers.
As of Friday, the national average for a gallon of regular gasoline was $3.15, according to AAA — down 36 cents from the same time last year.
That drop comes at a good time, with more than 61 million Americans expected to hit the road over the holiday weekend. “Americans will spend ~$500 million less on gasoline this July 4 weekend (Thu-Sun) vs last year,” Patrick De Haan, head of petroleum analysis at GasBuddy, posted on X.
The decline in prices is largely tied to falling oil prices (CL=F, BZ=F) after President Trump announced a ceasefire agreement between Israel and Iran, easing fears of a global supply disruption.
Despite cheaper gas, volatility may still lie ahead. “We may wobble a bit higher or lower in July and August,” said Tom Kloza, chief market analyst at Turner, Mason & Co. “Demand is decent and there are enough issues with US refining to keep the market supported in these peak summer months.”
Kloza also highlighted regional price disparities. Drivers in the Southeast and Great Lakes regions might see gas prices dip below $2.50 per gallon. Meanwhile, California continues to lead the nation with the highest prices.
The Golden State’s elevated costs stem from strict fuel blend standards, higher taxes, and environmental fees — along with the anticipated shutdown of two major refineries that could push prices higher. Still, prices in California have eased to $4.57 per gallon, down 22 cents from last year.
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