Gas prices projected to hit lowest July 4th level since 2021, GasBuddy says

(LOOTPRESS) – Drivers across the U.S. are likely to see some relief at the pump this Independence Day.

According to GasBuddy, a leading fuel savings platform, the national average gas price is projected to fall to $3.15 per gallon on July 4 — the lowest Independence Day price since 2021 and nearly 35 cents less than last year’s average.

Though global energy markets experienced some recent turbulence, gas prices are once again dropping.

The decrease is largely credited to easing geopolitical tensions in the Middle East and increased oil production from OPEC in recent months.

“With tensions in the Middle East cooling off after a few weeks of volatility, consumers planning to hit the road for the Independence Day weekend will see gasoline prices falling in the run-up to July 4 nearly coast to coast,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

“Relief could continue as the holiday weekend approaches, with the national average falling to its lowest July 4 level since 2021. As long as tensions don’t escalate again in the Middle East and the U.S. isn’t threatened by a major hurricane, we could see the national average fall below $3 per gallon later this summer.”

This year’s projected average marks the third straight year of July 4 fuel price declines.

The $3.15 per gallon average is a notable drop from the $3.49 recorded in 2024. That decline could save Americans more than $500 million on gasoline between Thursday, July 3, and Sunday, July 6, compared to the same period last year.

GasBuddy attributes the trend to a combination of factors including the gradual economic rebalancing since the U.S. reopened in 2022, ongoing effects from Russia’s invasion of Ukraine, and continued oil output from Russia and OPEC.

Efforts by the Federal Reserve to curb inflation through interest rate hikes have also helped bring supply and demand into better alignment.

July 4 national average gas prices by year: