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Gas prices fall below $4 a gallon for first time since July
Fox Business • • business
Key Points:
- Gasoline prices in the U.S. fell to their lowest level since July, with the national average dropping below $4 per gallon to $3.97 on Tuesday, according to AAA data.
- Prices have decreased by about 17 cents per gallon over the past week and 39 cents compared to a month ago, influenced by the switch to lower-cost winter gasoline blends and reduced demand due to seasonal driving patterns.
- The decline follows a period of volatility driven by geopolitical tensions in the Middle East, particularly disruptions in oil flow through the Strait of Hormuz, which had previously pushed prices to a peak of $4.50 per gallon in May 2026.
- Despite recent price drops, the October Consumer Price Index showed gasoline prices rose by 1% last month, a slower increase compared to significant jumps in September and August.
- AAA forecasts that gas prices may continue to fall between 10 and 30 cents per gallon during the winter months due to lower demand and seasonal fuel changes.
