For the first time since early March, the average cost for a gallon of gas in the U.S. is below $4 a gallon. According to AAA data, gas hit an average of $3.99 a gallon on Thursday after two months of declining prices.
Gas prices are down from a peak of $5.01 a gallon on June 14. Prices remain high compared to this time a year ago when gas was $3.18 a gallon.
California and Hawaii are the only states where gas remains above $5 a gallon. Texas has the lowest average price for gas at $3.49 a gallon.
Demand for gas has declined this summer amid high prices. Earlier this week, AAA compared the current market to July 2020, when many Americans were not traveling due to the pandemic.
There have also been rising domestic and international oil supplies, which helps bring down the cost.
“Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices,” said Andrew Gross, AAA spokesperson. “Couple that with fewer drivers fueling up, and you have a recipe for gas prices to keep easing.”