US gas prices drop for 6th straight week as oil retreats below $73

The national average for regular gasoline fell 8 cents to $3.831 a gallon in the week ended June 30, while diesel dropped 16 cents to $4.668, according to EIA data released Tuesday — the sixth straight weekly decline for both fuels.

"Looking at the decline, it's actually a faster decline than what we saw in 2022," Patrick De Haan, head of petroleum analysis at GasBuddy, said. "To see 38 states back below the $4 gallon mark just in time for July Fourth is certainly terrific news."

Brent crude traded at $72.68 a barrel on Wednesday, down 23.5% from a month ago when it stood at $95.04, as the U.S. and Iran signed an agreement to suspend hostilities and reopen the Strait of Hormuz. The decline has erased the entire war premium built up since the conflict erupted. Americans are now spending about $300 million less on gasoline each day than they were roughly 40 days ago, according to GasBuddy data.

The easing at the pump provides a tailwind for consumer discretionary spending heading into the peak summer driving season, with AAA projecting a record number of Americans traveling for Independence Day weekend and 85% of them driving. For lower-income households, the relief is particularly significant — Bank of America noted in a recent report that roughly half of such households describe their finances as poor or terrible, and lower gas prices could help narrow the gap in spending growth.

Regional declines led by the West Coast

The biggest price drops came on the West Coast, where diesel fell 28 cents to $5.528 a gallon and gasoline declined 14 cents to $4.919. Excluding California, West Coast diesel averaged $4.962. The Gulf Coast remains the cheapest region for both fuels, with diesel at $4.283 and gasoline at $3.321. In the Rockies, diesel dropped 19 cents to $4.602 and gasoline fell 13 cents to $3.715. The Midwest saw diesel decline 17 cents to $4.583 and gasoline fall 10 cents to $3.625. Along the East Coast, diesel fell 13 cents to $4.758 while gasoline dropped 4 cents to $3.742.

Despite the recent declines, prices remain elevated compared with a year ago. The national diesel average is $1.159 higher than this time last year, while gasoline is 66 cents higher. The current national gas average of $3.831 is still well below the record $4.80 reached in June 2022 but marks the most expensive Fourth of July at the pump in four years.

What comes next

De Haan said gas prices could fall into the low-to-mid $3 range by Labor Day if the U.S.-Iran peace deal holds and oil markets remain stable. But the situation remains fragile — fresh attacks were traded between the two sides as recently as late June before the ceasefire took effect, and experts have warned that transit through the Strait of Hormuz may never return to pre-conflict norms even if a permanent peace is reached.

President Donald Trump has also weighed in, criticizing oil companies in a Truth Social post for not lowering pump prices fast enough relative to the decline in crude costs. "The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil," Trump wrote.

This article is for informational purposes only and does not constitute investment advice.