Fourth of July gas hasn't been this cheap since 2021

As our nation gets ready to celebrate Independence Day, travelers are being warned to brace for heavy traffic on the roads and long lines at airports. AAA estimates more than 72 million people will travel 50 miles or more this week. That's *** new record. Part of the reason for that is because July 4th falls on *** Friday this year, so that gives people that long holiday. *** AAA spokesperson, Kellen Howell says the group started recording July 4th travel from June 28th as many people took the entire week off for the holiday. They estimate most people will be driving to their destination with roughly 62 million people on the roads. If you're leaving after 11 a.m. or after lunchtime, you are very likely going to sit in traffic. The busiest road travel times will be Wednesday, July 2nd, between noon and 9 p.m. and Sunday, July 6th between noon and 6 p.m. according to Inrix, which provides transportation data. If you're flying this week, TSA recommends arriving to the airport early. 18.5 million people are expected to fly between Tuesday, July 1st and Monday, July 7th. Here's the good news. Gas prices are down. Gas prices are much lower than we have seen in recent years, about 20 cents lower than they were this time last year. As of Monday, the average price for *** gallon of regular gas was 319 cents. That's 3 cents cheaper than *** week ago. For Consumer Watch, I'm Jen Sullivan.

Updated: 10:37 AM CDT Jul 1, 2025

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Fourth of July gas hasn't been this cheap since 2021

Updated: 10:37 AM CDT Jul 1, 2025

Editorial Standards ⓘ

Drivers hitting the road this Fourth of July weekend won’t need to break the bank to fill up at the gas pump.Gas prices are expected to average between $3.10 and $3.15 per gallon nationally this Fourth of July, according to GasBuddy, which tracks fuel prices.That’s down sharply from $3.49 per gallon last year and would represent the cheapest gas for the summer holiday since at least 2021.If the national average drops below $3.12 per gallon, it would be the lowest Fourth of July price for gas since 2020 during the height of the COVID-19 pandemic, according to GasBuddy.Muted gas prices represent one of the biggest bright spots in the U.S. economy.Last month’s Israel-Iran conflict interrupted the trend of cheaper gas prices – but only briefly. Oil prices skyrocketed after Israel and then the United States launched attacks on Iran, fanning fears of a regional war that could derail the region’s vital energy supplies. Gasoline prices started climbing sharply, threatening to make Fourth of July a much more expensive time to travel by car.But energy prices have since tumbled as Israel and Iran reached a ceasefire, reducing the risk of a disastrous disruption in the flow of oil out of the Strait of Hormuz. U.S. crude oil settled at $65.11 a barrel on Monday – down sharply from an intraday peak of $79 on June 22.“The pendulum swung very rapidly,” said Patrick De Haan, GasBuddy’s head of petroleum analysis.That’s very good news for the many Americans set to travel this holiday weekend.According to AAA, a record-setting 61.6 million people are expected to travel by car this Fourth of July weekend. That’s up by 2.2%, or 1.3 million people, compared with last year.Based on the current forecast, Americans are expected to spend about $500 million less on fuel than last Fourth of July, according to GasBuddy.Gas looks even cheaper from an inflation-adjusted basis.Americans are making significantly more money, on average, than they did in 2021 or 2020. That means filling up at the pump is swallowing up a smaller and smaller chunk of paychecks.Consider that inflation-adjusted gasoline prices averaged $3.68 per gallon in June 2021 and $5.43 in June 2022, according to the U.S. Energy Information Administration. That’s well above today’s prices of around $3.15 to $3.20 a gallon.Drivers in some U.S. states are enjoying significantly cheaper gas prices compared with last year, including Ohio (56 cents cheaper), Florida (43 cents), Kentucky (42 cents) and Michigan (42 cents), according to AAA.As always, there’s a risk that gas prices could start climbing again if something else goes wrong in the Middle East, U.S. refineries suffer outages or hurricane season interrupts energy supplies.But short of that, analysts say the outlook remains favorable to drivers this summer when it comes to gas prices.Not only have Israel-Iran fears eased, but OPEC continues to aggressively add more supply, and U.S. oil production remains near record highs.That’s why GasBuddy says it’s possible gas prices will slip below $3 per gallon nationally by Labor Day weekend.“There’s limited ability for gas prices to rise above last summer’s levels. All in all, it’s not a bad time to hit the road,” De Haan said.

Drivers hitting the road this Fourth of July weekend won’t need to break the bank to fill up at the gas pump.

Gas prices are expected to average between $3.10 and $3.15 per gallon nationally this Fourth of July, according to GasBuddy, which tracks fuel prices.

That’s down sharply from $3.49 per gallon last year and would represent the cheapest gas for the summer holiday since at least 2021.

If the national average drops below $3.12 per gallon, it would be the lowest Fourth of July price for gas since 2020 during the height of the COVID-19 pandemic, according to GasBuddy.

Muted gas prices represent one of the biggest bright spots in the U.S. economy.

Last month’s Israel-Iran conflict interrupted the trend of cheaper gas prices – but only briefly. Oil prices skyrocketed after Israel and then the United States launched attacks on Iran, fanning fears of a regional war that could derail the region’s vital energy supplies. Gasoline prices started climbing sharply, threatening to make Fourth of July a much more expensive time to travel by car.

But energy prices have since tumbled as Israel and Iran reached a ceasefire, reducing the risk of a disastrous disruption in the flow of oil out of the Strait of Hormuz. U.S. crude oil settled at $65.11 a barrel on Monday – down sharply from an intraday peak of $79 on June 22.

“The pendulum swung very rapidly,” said Patrick De Haan, GasBuddy’s head of petroleum analysis.

That’s very good news for the many Americans set to travel this holiday weekend.

According to AAA, a are expected to travel by car this Fourth of July weekend. That’s up by 2.2%, or 1.3 million people, compared with last year.

Based on the current forecast, Americans are expected to spend about $500 million less on fuel than last Fourth of July, according to GasBuddy.

Gas looks even cheaper from an inflation-adjusted basis.

Americans are making significantly more money, on average, than they did in 2021 or 2020. That means filling up at the pump is swallowing up a smaller and smaller chunk of paychecks.

Consider that averaged $3.68 per gallon in June 2021 and $5.43 in June 2022, according to the U.S. Energy Information Administration. That’s well above today’s prices of around $3.15 to $3.20 a gallon.

Drivers in some U.S. states are enjoying significantly cheaper gas prices compared with last year, including Ohio (56 cents cheaper), Florida (43 cents), Kentucky (42 cents) and Michigan (42 cents), .

As always, there’s a risk that gas prices could start climbing again if something else goes wrong in the Middle East, U.S. refineries suffer outages or hurricane season interrupts energy supplies.

But short of that, analysts say the outlook remains favorable to drivers this summer when it comes to gas prices.

Not only have Israel-Iran fears eased, but OPEC continues to aggressively add more supply, and U.S. oil production remains near record highs.

That’s why GasBuddy says it’s possible gas prices will slip below $3 per gallon nationally by Labor Day weekend.

“There’s limited ability for gas prices to rise above last summer’s levels. All in all, it’s not a bad time to hit the road,” De Haan said.

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