In the US, average gas prices have dropped below $4 per gallon for the first time since March, after steadily declining from a peak of $5 per gallon in June.
As of Friday, August 12th, the average price for a gallon of regular gas is $3.98, according to the American Automobile Association (AAA).
But that doesn’t mean drivers in all states are below the $5 threshold yet. Hawaiians currently pay the most for gas, which averages $5.39 per gallon in their state. In California, the current price for a gallon of gas is $5.38, although it’s down from over $6 a month ago.
In the last week, Colorado, Arizona, Illinois, Maine, Ohio, Kansas and West Virginia have had the biggest price drops, worth 18 cents per gallon or more, according to AAA.
Here’s a look at the range of prices, by state:
Why are gas prices dropping?
There are many reasons for the decline in gas prices, but it’s primarily related to falling crude oil prices, which account for around 50% of the price consumers pay, according to the US Energy Information Administration (EIA).
Crude oil prices are sensitive to economic slowdowns, which is likely driving the overall drop in demand. West Texas Intermediate crude, the US oil benchmark, has declined from $130 per barrel to just over $94, as of Thursday.
Other reasons include reduced demand from drivers reeling from price shock, as well as state gas tax holidays.
The dip in prices might not last, however, especially if unpredictable events like Hurricanes or the war in Ukraine further disrupt the supply of oil.
The EIA expects the cost of retail gasoline to average $4.29 per gallon through September, according to a forecast released on Tuesday. That price is then expected to fall to an average of $3.78 per gallon for the remainder of the year.
Sign up now: Get smarter about your money and career with our Weekly newsletter
Don’t miss: This 33-year-old mom makes $760,000 a year in passive income—and lives on a sailboat: ‘I work just 10 hours a week’