Jul 19, 2022 - Economy

National average gas price falls below $4.50 a gallon

Jacob Knutson

A car fueling up in Hercules, California, in June 2022. — A car fueling up in Hercules, Calif., in June 2022. Photo: David Paul Morris/Bloomberg via Getty Images

National gas prices fell below $4.50 per gallon on Tuesday, marking a two-month low, according to AAA.

Why it matters: The national average for a gallon of regular hit $4.495 on Tuesday, marking around a 10% decrease from June's peak of over $5 a gallon and giving people a bit of relief at the pump during peak driving season in the U.S.

It's the first time the national average for regular gas has slipped below $4.50 since May 16, according to data from the U.S. Energy Information Administration.

By the numbers: The average price of a gallon of gas dipped under $4.50 in at least 25 states, with South Carolina's average of $3.998 being the lowest in the country, according to AAA.

The national average for a gallon of diesel dropped to $5.515 on Tuesday, a drop of 30 cents from last month's average.

What they're saying: "Global economic headwinds are pushing oil prices lower and less expensive oil leads to lower pump prices," Andrew Gross, a spokesperson for AAA, said in a statement on Monday.

"And here at home, people are fueling up less, despite this being the height of the traditional summer driving season. These two key factors are behind the recent drop in pump prices," Gross added.

Go deeper: State Department adviser expects gas prices to fall to $4 a gallon

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National average gas price falls below $4.50 a gallon

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