U.S. gas prices dip below $4 a gallon

U.S. drivers are seeing noticeable relief at the pump as the national average price of regular gasoline has fallen below $4 a gallon for the first time since July. The average price was $3.9788 per gallon on Tuesday, Nov. 10, and $3.94 per gallon on Wednesday, Nov. 11, according to AAA.

The move below the $4 threshold ends a 114-day stretch at or above that level, marking a clear break from the higher prices that had persisted since midsummer. On Election Day, the nationwide average for regular gas stood at $4.14 before sliding to about $3.97 by Nov. 10. While this offers relief compared with recent peaks, gasoline remains more expensive than a year ago, when the national average was $3.07 per gallon.

Despite the national retreat, prices vary significantly by state. As of Nov. 11, California’s average price for regular gasoline is $5.674 per gallon, while Hawaii stands at $5.622 and Nevada at $5.001, keeping much of the Western U.S. well above the $4 mark. Oregon’s average recently fell by 15 cents in a week to $4.62 per gallon. In contrast, many Southern states show considerably lower prices, with most below $3.70 per gallon.

State averages illustrate the spread across the country. Texas stands at $3.420 per gallon, Georgia at $3.434, and North Carolina at $3.210. In the Midwest, prices such as $3.521 in Indiana, $3.693 in Kansas, and $3.795 in Iowa remain below the national average but still materially higher than the $2.508 seen in some regions a year earlier. Northeastern states mostly remain above $4, including New York at $4.209 and Massachusetts at $4.039, while New Jersey is just over that mark at $4.013.

While gasoline prices have dropped quickly, diesel has been slower to adjust. The national average diesel price is $6.16 per gallon, down from its late‑September peak but still above $6. Earlier in the year, diesel set a record high of $6.52 per gallon on Sept. 22 and has since remained elevated. Over the past year, diesel prices are up 63%, compared with a 28% rise for gasoline over the same period.

Gasoline prices had climbed earlier alongside geopolitical tensions and disruptions to crude flows, with the national average reaching $4.30 per gallon at the wartime peak and $4.16 in April. California drivers previously faced state averages around $6 per gallon. Although prices have now eased below $4 nationally, AAA notes that current levels are still historically high for this time of year, with the record average U.S. Thanksgiving price cited at $3.58 per gallon in 2022.

Several factors are contributing to the recent pullback in pump prices. A sharp retreat in crude oil has helped, with Brent crude (UKOIL) briefly dipping below $90 a barrel, as Gulf crude flows continue to recover. Seasonal patterns are also in play: gasoline demand typically declines heading into winter as Americans drive less, while refineries complete maintenance and boost output.

The shift to less expensive winter-blend fuel is another driver of lower prices, with typical seasonal declines of around 10 to 30 cents per gallon. Energy inflation has cooled as well, with overall energy prices rising 0.7% in October, compared with a 5.2% surge in September, and the gasoline index increasing 1% after a 9.1% jump the prior month. Analysts note that the current decline has been ongoing and is not limited to any single event, suggesting that seasonal and market forces together are easing pressure on U.S. motorists.