Average U.S. Gas Prices Drop Below $4 A Gallon For First Time In Months

By Bill Galluccio

August 11, 2022

Supreme, Plus, Regular gasoline at gas station pump.
Photo: Getty Images

The average cost of gas in the United States fell below $4 a gallon on Thursday (August 11) for the first time since March. According to the American Automobile Association's gas price tracker, the national average dropped to $3.99 a gallon.

Despite the drop, gas is still 81 cents more expensive than it was last year.

Texas boasts the lowest average cost of gasoline in the country at $3.39 a gallon, while Hawaii has the highest gas prices in the nation at $5.39 a gallon.

The price of gas has been slowly coming down as drivers cut back amid record-high fuel prices earlier in the summer when gas prices topped out at $5.02 a gallon. In addition, an increased supply of oil has helped push down the cost of fuel.

Some experts cautioned that the current drop in prices could be reversed in the coming months. Bob Yawger, director of energy futures at Mizuho, told CNBC that refineries in the U.S. are stretched to their limit, and any disruption, say from a hurricane in the Gulf Coast, could send prices higher. In addition, the release of barrels from the Strategic Petroleum Reserve is set to end in the fall, decreasing the amount of oil in the market. He also noted that demand for petroleum products could jump as economic conditions improve in China, resulting in higher oil prices.

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