AAA reported that the national average price for regular gasoline slipped to $3.999 per gallon, giving drivers modest relief after months of elevated fuel costs.
By yourNEWS Media Newsroom
The national average price for a gallon of regular gasoline has fallen below $4 for the first time since late March, offering drivers some relief after months of high fuel costs.
The nationwide average dropped to $3.999 per gallon Thursday, down about three cents from the previous day, according to AAA data cited by CNN.
GasBuddy data showed the national average had already moved lower earlier in the week, slipping to roughly $3.98 per gallon.
Nearly 30 states are now reporting average gasoline prices below $4 per gallon. Indiana had one of the lowest averages in the country, at approximately $3.40 per gallon.
The decline comes after signs of easing tensions in the Middle East following an agreement between Iran and the United States aimed at ending the conflict that disrupted global energy markets.
Fighting earlier this year led to the closure of the Strait of Hormuz, a critical shipping route through which roughly one-fifth of the world’s oil supply normally passes. The disruption pushed crude oil and gasoline prices sharply higher.
Pump prices have been falling since reaching a national average of about $4.56 per gallon in late May. Traders had begun anticipating that oil shipments through the Strait of Hormuz would eventually resume.
Energy analysts caution, however, that gasoline prices are unlikely to return soon to the roughly $3-per-gallon levels seen before the conflict.
Restoring global oil supplies is expected to take time. Tanker traffic through the Strait of Hormuz is projected to recover gradually over the coming months.
Regional production and refining facilities are also still ramping back up after wartime disruptions and damage. Rebuilding inventories could take longer.
Although the United States is one of the world’s largest oil producers, domestic gasoline prices remain closely tied to global crude markets. That means disruptions in international oil supplies can still affect prices paid by American drivers.
Industry analysts also note that retail gasoline prices often fall more slowly than they rise.
Many station operators absorbed part of the earlier increase in wholesale fuel costs to stay competitive. As wholesale prices ease, some retailers may be using the decline to recover thinner profit margins.
Despite the recent drop, fuel costs remain significantly higher than they were before the conflict began.
Some analysts warn that prices could rise again later this summer if seasonal driving demand strengthens or if global crude supplies remain tight.
For now, motorists are seeing lower prices at the pump, but energy experts say sub-$3 gasoline is unlikely to return in the near future.
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