Average U.S. Gasoline Price Dips below $4 for First Time since July

The average price of regular gasoline in the United States recently fell below $4 per gallon for the first time since mid-July, as international crude oil prices declined and demand dropped seasonally. On Tuesday morning, the national average gasoline price was $3.9788 per gallon, according to AAA data. This marks a decrease from $4.1493 a week prior and $4.3669 per gallon a month ago. However, it is still above the usual seasonal price.

Compared to the same time last year, the national average gasoline price was approximately $1 lower, at $3.0707 per gallon. Gasoline prices have been declining in recent weeks due to reduced driving demand, but they remain about 20% higher than the seasonal average. Analysts anticipate further declines, with the average gasoline price potentially reaching $3.70 per gallon by Thanksgiving or so, according to Patrick De Haan, head of petroleum analysis at GasBuddy. Prices may even drop below that if the geopolitical situation stabilizes, the analyst added.

Currently, below $3/gallon prices are being observed at gas stations in Indiana, Ohio, Georgia, North Carolina, Texas, Oklahoma, and Louisiana. Since peaking on September 24, gas prices have consistently fallen nationwide every week, from $4.494/gal to the current $3.965/gal. This trend is expected to continue for at least another week or two before finding a bottom. However, the situation may still change due to geopolitical developments.

Meanwhile, diesel prices remain high, with the average price in the U.S. still above $6 per gallon, at $6.1572 on Tuesday. This is higher than the $3.7389 per gallon price at this time last year. The global supply crunch is affecting diesel prices, as fuel exports out of the Middle East are still below pre-war levels.