U.S. Gasoline Average Falls Below $4 for First Time Since July

The average was down from $4.1493 a week earlier and $4.3669 a month earlier. At the same time last year, it was $3.0707 per gallon. Gas prices have fallen in recent weeks as driving demand eased, but remain about 20% above seasonal norms.

Patrick De Haan, head of petroleum analysis at GasBuddy, said late Monday that the national average could drop to $3.70 per gallon by around Thanksgiving. Prices could fall further if the geopolitical situation remains in balance, he said. De Haan said stations in Indiana, Ohio, Georgia, North Carolina, Texas, Oklahoma and Louisiana were already offering gasoline below $3 per gallon.

De Haan said prices had fallen almost every week since peaking at $4.494 per gallon on Sept. 24, reaching $3.965 per gallon at the time of his remarks. He expected declines to continue for at least another week or a few weeks, while warning that geopolitical developments could affect the trend.

Oil prices have tumbled in recent days amid renewed hopes that diplomatic efforts could lead to some form of agreement between the United States and Iran. Diesel prices remain elevated amid a global supply crunch, with Middle Eastern fuel exports still substantially below pre-war levels. The U.S. average for diesel stood at $6.1572 per gallon Tuesday, compared with $3.7389 a year earlier.