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.