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

The national average price of regular gasoline dropped below $4 a gallon this week for the first time since mid-July, according to AAA and GasBuddy data, giving drivers some relief after months of elevated pump prices tied largely to the Iran conflict and oil-market volatility.

AAA reported the national average at $3.9788 a gallon on Tuesday, November 10—down roughly 17 cents from a week earlier and about 39 cents from a month ago. It was the first reading under the $4 threshold since around July 19–20. GasBuddy, which aggregates millions of price reports from more than 150,000 stations, put the average near $3.96, noting that prices fell in every state over the prior week and that the national figure had dropped below $4 for the first time since early August.

The decline follows a retreat in crude oil prices. Brent crude briefly traded near or below $90 a barrel amid hopes of further de-escalation in the Middle East, where U.S. and Israeli strikes on Iran earlier in the year had disrupted Gulf shipping and sent energy prices higher. Analysts also cite the normal seasonal drop in driving demand after Labor Day, the switch from more expensive summer-blend gasoline to cheaper winter-blend fuel, and partial recovery in Persian Gulf oil flows toward pre-conflict levels.

Even with the drop, prices remain substantially higher than a year ago. AAA data showed the national average roughly 90–92 cents above the year-earlier level of about $3.07 a gallon. Before the Iran-related disruptions began in late February, the average had been under $3. Diesel prices have stayed elevated, with the national average still above $6 a gallon.

Patrick De Haan, head of petroleum analysis at GasBuddy, said further declines are likely in the near term if geopolitical conditions remain stable, potentially bringing the average closer to $3.70 by Thanksgiving.

Prices vary widely by region. Several Southern and Midwestern states are seeing averages in the low-to-mid $3 range, while California, Hawaii, and parts of the West and Northeast remain well above $4 and in some cases approach $6. The lowest state averages reported this week included North Carolina, Texas, and Georgia.

Wholesale and retail gasoline prices continue to track crude oil and refining conditions. Further movement will depend on Strait of Hormuz traffic, any additional developments in the Iran conflict, and typical winter demand patterns. For now, the drop below $4 marks the first sustained break under that psychological level in more than three months.