July 4 gas prices are easing, but holiday drivers still face a costly weekend
United States Prices and Inflation Watch – Gasoline is cheaper than late spring, but 72.2 million July 4 travelers still face a costly fill-up.
Holiday driving is getting a little cheaper than it was a month ago, but July 4 travel is still landing in a high-cost fuel market. AAA said the national average for regular gasoline was $3.83 a gallon on July 2, nearly 50 cents below a month earlier, still above last year, and the highest in four years. AAA also expects 72.2 million Americans to travel at least 50 miles from home between June 27 and July 5, with 61.4 million planning to drive.
What the current fuel data show
The Energy Information Administration’s latest benchmark puts U.S. regular gasoline at $3.831 a gallon for the week ending June 29, down 8.3 cents from the week before. That is real relief, but it is still a far cry from cheap fuel.
Why prices are easing slowly
EIA said U.S. refineries were running at 96.1% capacity, while commercial crude inventories fell by 6.1 million barrels and gasoline inventories rose by 2.1 million barrels but remained 5% below the five-year average. That mix helps explain why prices have eased without collapsing.
The next EIA fuel update is due July 7, and it will show whether the holiday-week decline keeps going or levels off after the busiest travel days pass. For now, drivers should expect some relief, but not a cheap holiday weekend.
Sources
- AAA newsroom: July 2 fuel update
- EIA: gasoline and diesel fuel update
- Axios: July 4 gas-price explainer
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