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U.S. Gasoline Prices Drop to Lowest Fourth of July Level Since 2021

Robust oil output with easing Middle East tensions has driven the national pump average to its cheapest early July mark in four years as California enacts modest tax plus low-carbon fuel charges.

Cars drive on the FDR drive on April 30, 2025 in New York City.
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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President President Donald Trump waves as he visits a migrant detention center, dubbed "Alligator Alcatraz," located at the site of the Dade-Collier Training and Transition Airport in Ochopee, Florida, on July 1.

Overview

  • The national average price for regular gasoline stood at about $3.18 per gallon on July 2, marking the lowest holiday rate since 2021.
  • Gulf Coast states report pump prices below $2.80 per gallon while California averages have risen above $4.50 following higher state levies.
  • California’s gas excise tax rose by 1.6 cents to 61.2 cents per gallon on July 1 and University of California, Davis research estimates new low-carbon fuel rules will add only 5 to 8 cents.
  • De-escalation in the Israel-Iran conflict combined with strong U.S. shale and OPEC+ supplies has kept inventories ample and prices contained.
  • GasBuddy analysis indicates a sub-$3 national average could materialize later this summer if geopolitical risks remain low and no major hurricanes develop.