Gas prices dropping to $3.18 per gallon, expected to fall below $3 later this year.
From Yahoo Finance: 2025-07-01 11:00:00
Gasoline prices are at their lowest since 2021, with the national average at $3.18 per gallon. Cheaper gas saves Americans $500 million this July 4 weekend. Lower oil prices due to a ceasefire between Israel and Iran contribute to the drop.
Despite relief, gas prices may fluctuate in July and August. Prices vary across regions, with the Southeast and Great Lakes seeing lower prices than California. California’s high prices are due to special fuel blend requirements, taxes, and refinery shutdowns.
Analysts project gas prices falling below $3 later this year, but weather and Middle East tensions could impact prices. If no major hurricanes or Middle East conflicts occur, prices could drop below $3 this summer. Energy analysts anticipate prices falling as driving season ends.
Ines Ferre, a Senior Business Reporter for Yahoo Finance, reports on the current gas price trends. Follow her on Twitter @ines_ferre for more updates and insights. For in-depth analysis of stock market news, visit Yahoo Finance for the latest updates and market movements. Stay informed with the latest financial and business news from Yahoo Finance.