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1h ago

U.S. Gasoline Average Drops Below $4 a Gallon for First Time Since July

Falling crude futures driven by a seasonal drop in gasoline demand have pulled the national pump average under $4.

People fill up their tanks at a gas station at Hadley and Smith in the Midtown area of Houston, Monday, Sept. 29, 2025. Houston gas prices fell 13 cents in a week, GasBuddy says, as cooler weather and stronger refinery output — not politics — lower costs.
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The drop in pump prices came after oil futures plunged 13% last week.
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Overview

  • The national average for a gallon of regular gasoline fell below $4 on Tuesday, according to AAA data reported across multiple outlets.
  • Analysts say the immediate drivers are lower crude and gasoline futures, refineries switching to cheaper winter blends, and the end of the summer driving season.
  • States are seeing wide variation: Michigan fell about 38 cents to roughly $4.17, Florida averages near $3.79, and California remains far higher at about $5.75 per gallon.
  • Political actors credit different causes for the drop, but market analysts emphasize supply, refinery flows and seasonal demand shifts rather than election outcomes.
  • Longer-term risks remain because diesel and jet fuel prices are still elevated and analysts estimate roughly 7 million barrels per day of refined-product capacity has been lost to damage, which could make prices volatile again.