Topline

The average price for a gallon of regular gasoline in the US fell to $4.08 on Saturday, according to AAAwith the cost having dropped below $4 a gallon already in 22 states amid waning demand.

Key Facts

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Gas prices are the lowest on average in Southern and Midwestern states, with Texas boasting the cheapest fill-ups in the US at $3.59 a gallon, according to AAAfollowed by South Carolina at $3.62 and Arkansas at $3.64.

Other states where the average price is below $4 a gallon are: Georgia ($3.65), Oklahoma ($3.65), Tennessee ($3.66), Mississippi ($3.67), Alabama ($3.67), Kentucky ($3.69), Missouri ($3.70), Kansas ( $3.70), Iowa ($3.70), Louisiana ($3.71), Wisconsin ($3.76), Ohio ($3.77), North Carolina ($3.78), Florida ($3.81), New Mexico ($3.85), Virginia ($3.87), Nebraska ($3.92), Delaware ($3.96) and Indiana ($3.99).

At least 12 gas stations across the US are selling gas for less than $3 a gallon, according to to GasBuddy analyst Patrick De Haan, including four in Iowa, three in Texas, three in Oklahoma and two in Kansas.

The most common gas price in the US is $3.79 a gallon, De Haan tweeted Saturday.

Contra

Four states still have an average gas price above $5 a gallon, according to AAA: California ($5.47), Hawaii ($5.42), Alaska ($5.01) and Nevada ($5.00). Gas in four California counties is actually averaging above $6 a gallon, topped by Alpine County, a rural area along the Nevada border. The average gas price in the county is $6.80 a gallon, per AAA—the highest of anywhere in the nation.

What To Watch For

De Haan predicts the national average will drop below $4 a gallon in the next week, and could decline to $3.59 a gallon in the coming weeks if the US coastline avoids hurricane threats.

Key Background

Gas prices have fallen for 53 straight days after the nationwide average peaked at $5.02 a gallon in mid-June, amid a fallback in oil prices and worries of a recession. Last week, demand for gasoline dropped to 8.54 million barrels per day, according to the Energy Information Administrationwhich AAA noted is 1.24 million b/d lower than the same time last year and around the level of consumption at the end of July 2020, when Covid restrictions were keeping many Americans off the road. Prices skyrocketed for months to start 2022 in response to an increase in the cost of crude oil, due to factors like diminishing US refining capacity and an embargo on the import of Russian oil in response to the war in Ukraine.

As US Gas Prices Top $5, Here Are The States Where It's Most Expensive And Cheapest (Forbes)

Gas Nears $4 A Gallon Amid 50-Day Drop: Here's Where Prices Are Lowest (Forbes)

Hurricane Activity Could Skyrocket In Coming Weeks After July Lull, Forecasters Say (Forbes)