Gas prices in the U.S. have hit their lowest summer level in four years, offering some much-needed relief just as millions of Americans prepare to hit the road for the Fourth of July weekend.
According to AAA, the national average price for a gallon of gas stood at $3.16 on Thursday nearly 10% cheaper than last year. That drop is a big win for the estimated 61 million people expected to travel by car during the holiday.
💰 Why Are Gas Prices Dropping?
The decline in gas prices isn’t just random it’s tied to several global and economic shifts. Here’s what’s driving the price drop:
1. Crude Oil Prices Are Falling
The biggest factor behind cheap gas is cheap oil. U.S. oil prices (West Texas Intermediate futures) have dropped more than 17% since peaking in January. This comes as fears of a global economic slowdown have pushed down demand.
2. OPEC+ Increased Oil Production
The alliance of oil-producing countries known as OPEC+ has ramped up supply recently. That extra oil has helped balance the spike in summer demand, which usually pushes prices up.
3. Stabilization in the Middle East
Crude prices had surged earlier this year after a conflict between Israel and Iran, but with tensions easing, prices have since stabilized benefiting consumers directly.
“Most of what we pay at the pump is in direct correlation to the price of crude oil,” says Aixa Diaz, AAA spokesperson.
📉 Where Is Gas Cheapest Right Now?
As of this week, 20 states have gas prices averaging under $3 per gallon. These include:
- Mississippi – Lowest in the nation at $2.71
- South Carolina
- Missouri
- New Mexico
If you’re driving through any of these states this weekend, consider it a bonus stop for your wallet!
🛑 Trump’s $2 Gas Claim Sparks Fact Check
Earlier this week, Donald Trump claimed that gas had dropped below $2 in five states. However, GasBuddy, a popular fuel price tracker, found no gas stations nationwide offering prices under $2.
“This does not pass the sniff test,” said Patrick de Haan, head of petroleum analysis at GasBuddy.
De Haan added that Trump may have been referring to wholesale prices, which don’t reflect what consumers actually pay at the pump.
🔮 What’s Next? Will Prices Stay Low?
The good news? Experts say gas prices will likely stay near current levels or drop even further through the rest of the summer. Some forecasts suggest the national average could fall below $3 by September, if the world avoids major disruptions like:
- A new geopolitical conflict
- A strong hurricane season
- Major refinery shutdowns
“It could happen if we don’t see any of those caveats,” said de Haan. “If it’s a normal year.”
✨ Bottom Line
Whether you’re heading to the beach, visiting family, or chasing fireworks, you’ll be saving money at the pump this July 4. With gas prices at their lowest point since 2021, this summer road trip season is looking brighter and cheaper than ever.
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