A customer's hand grips the lever handle of a fuel pump nozzle inserted into a vehicle's gas tank inlet in Salt Lake City, Utah, United States, on September 30, 2026. (Photo by Charles-McClintock Wilson/NurPhoto via Getty Images)
The national average price for regular gasoline has fallen below $4 per gallon for the first time since July, according to AAA.
By the numbers:
Tuesday’s average stood at $3.98 per gallon, down three cents from Monday, compared with $4.15 a week ago and $4.37 a month ago.
Big picture view:
Prices have declined amid easing concerns about renewed military escalation with Iran. Lower seasonal demand and the switch to cheaper winter-blend gasoline have also contributed to the drop.
The White House has grown increasingly concerned that high gas and diesel prices could fuel voter backlash. The U.S. war with Iran has disrupted global oil trade since February, compounding pressures from Russia’s invasion of Ukraine and attacks on refineries in the Middle East and Russia.
What they're saying:
President Donald Trump has defended higher fuel costs as a small price to pay for preventing Iran from obtaining a nuclear weapon. He has also blamed his predecessor, former President Joe Biden, for many of the country’s economic problems.
Falling gas prices help ease inflation pressure
Why you should care:
Falling gas prices appear to be helping slow inflation, offering some relief to the Consumer Price Index. Inflation rose 0.4% in October, down from a 0.6% increase in September, suggesting price pressures may be easing even as costs remain elevated.
Still, the October reading came in higher than some economists' expected and has renewed concerns that the Federal reserve could continue raising interest rates. The stronger-than-expected data pushed Treasury yields higher and stocks lower, as investors weighed the possibility of additional rate hikes in the months ahead.
Dig deeper:
The cost of living weighed heavily on voters in last week’s midterm elections. Nearly nine in 10 said it was a crucial or major factor in their vote, according to polling conducted by SSRS for a consortium of U.S. media outlets.
GasBuddy reported that national average gasoline and diesel prices reached their highest levels on record for an Election Day last week.
Despite the recent decline, drivers are still paying considerably more than a year ago. AAA’s national average for regular gasoline was $3.07 per gallon at this time last year — about 91 cents below today’s price.
The Source: This story was written with information provided by AAA, Associated Press, Reuters and previous reporting from Fox Local. This story was reported from Orlando.