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5d ago

U.S. Gas Prices Hit Lowest June Level Since 2021 Despite July 1 Tax and Emissions Hikes

July 1 tax adjustments are nudging pump rates higher against a backdrop of falling crude prices driven by eased Middle East tensions.

Cars drive on the FDR drive on April 30, 2025 in New York City.
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A customer holds a fuel nozzle at a Chevron gas station in San Francisco, California, US, on Friday, June 7, 2024. Photographer: David Paul Morris/Bloomberg via Getty Images
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Overview

  • The national average price for regular gasoline was $3.185 per gallon in June, marking the lowest June level since 2021, according to AAA.
  • Multiple states including Illinois and California enacted inflation-indexed gas-tax hikes on July 1 that added roughly 1.6 to 2.8 cents per gallon at the pump.
  • California’s updated Low Carbon Fuel Standard took effect July 1, requiring annual cuts in fuel carbon intensity that are expected to add several cents per gallon.
  • Regional disparities persist with 21 states averaging below $3.00 per gallon and California remaining the most expensive at about $4.59, according to AAA.
  • GasBuddy analysts project national averages could fall below $3 per gallon later this summer if Middle Eastern tensions remain contained and hurricane threats stay minimal.