As millions of Americans prepare for the Independence Day weekend, they are experiencing some relief at the gas pump. The national average price for a gallon of regular gasoline has dropped to $3.83, which is nearly 50 cents lower than a month ago. This decline comes after a peak of $4.56 in mid-May, offering a welcome change during the busy summer driving season.
Despite this recent downturn, current gas prices are still higher than last year, and are the highest they've been in four years for this holiday. For example, the national average was $3.172 a year ago. Crude oil prices have also contributed to the relief, falling to the $60 a barrel range, with West Texas Intermediate (WTI) settling at $68.58 a barrel following a 92-cent drop in a recent trading session. U.S. crude oil inventories are at 408.4 million barrels, which is about 7% below the five-year average for this time of year.
Gasoline demand increased from 8.77 million barrels per day to 9.13 million barrels per day last week, according to the Energy Information Administration (EIA). Total domestic gasoline supply decreased from 216.3 million barrels to 214 million barrels, while gasoline production averaged 10 million barrels per day. The national average cost for electricity at public EV charging stations has remained stable at 41 cents per kilowatt hour.
Analysts like Patrick De Haan of GasBuddy note that while the six weeks of price declines are good news, the context is important. The projected Independence Day average of $3.75 per gallon, while an improvement from May's $4.57 peak, is still roughly 65 cents higher than last July 4th's average of $3.10. This makes it the second most expensive Independence Day ever recorded, behind only 2022's all-time high of $4.80. The U.S.-Iran agreement has helped ease supply fears, contributing to oil prices falling below $70 per barrel, but the situation remains fragile.
