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Average U.S. Gasoline Price Falls Below $4 for First Time in Months
The New York Times • • business
Key Points:
- The average price of U.S. gasoline fell below $4 a gallon for the first time in months, following a preliminary agreement between Iran and the U.S. to cease hostilities for 60 days and reopen the Strait of Hormuz.
- Gas prices had spiked to around $4.50 a gallon in May due to restricted energy supplies from the Middle East but have now dropped from $4.03 the previous day to just under $4, according to AAA.
- The agreement, electronically signed by the U.S. and Iranian presidents and mediated by Pakistan, includes lifting the U.S. naval blockade and reopening the strait immediately.
- Diesel prices have also decreased significantly, down to $5.13 a gallon from over $5.60 a month ago, providing relief to industries reliant on fuel.
- Economists warn that lower oil prices take time to fully impact gasoline costs, with regional price variations due to taxes, distribution, and refining capacity; some regions, especially on the West Coast, still face prices above $4 a gallon.
