Drivers are getting some relief at the pump just as the busy summer travel season begins.
The national average price for a gallon of regular gasoline fell to $3.99 on Thursday, marking the first time since March 30 that prices have dipped below the $4 mark. The decline extends a streak of nearly four consecutive weeks of falling prices.
Lower crude oil prices have helped ease costs after the United States and Iran reached an agreement to reopen the Strait of Hormuz, a key shipping route for global oil supplies. The drop comes as millions of Americans prepare to hit the road for the Independence Day holiday, with travel expected to reach record levels.
According to AAA, the national average stood at $3.999 a gallon, down from $4.129 one week ago and $4.515 one month ago. A year ago, drivers were paying an average of $3.188.
Gasoline demand increased last week, according to the U.S. Energy Information Administration. Demand rose from 8.73 million barrels per day to 9.21 million barrels per day, while domestic gasoline supplies slipped from 215.1 million barrels to 214.2 million barrels. Gasoline production climbed to an average of 10.1 million barrels per day.
Meanwhile, oil prices edged higher Wednesday. West Texas Intermediate crude gained 74 cents to settle at $76.79 a barrel. U.S. crude inventories fell by 8.3 million barrels and remain about 6% below the five-year average for this time of year.
California continued to have the highest average gas price in the nation at $5.64 a gallon, followed by Hawaii ($5.57) and Washington ($5.43).
Among the least expensive states, Indiana led the way at $3.39, followed by Texas at $3.49 and Oklahoma at $3.50.
Florida motorists were seeing even lower prices, with an average of $3.70 a gallon.
The recent decline in prices could provide welcome relief for travelers as the summer vacation season reaches its peak.
