American gas stations are now charging less than $4 for a gallon of regular gas, dropping below that benchmark for the first time since March 30.
The US national average dropped to $3.999 per gallon on Thursday, according to AAA, down nearly 3 cents from the day before. Indiana has the cheapest average price at $3.40, one of 28 states where the average price is below $4. GasBuddy, another tracking service, puts the price early Thursday at about $3.98, after falling below the $4 on Sunday.
The milestone comes just as the Strait of Hormuz is set to reopen, part of an official memorandum of understanding between Iran and the United States to end the war. The strait’s closure in late February choked off about 20% of the world’s oil supply, causing gas and oil prices to soar.
The national average price at the pump has fallen every day since hitting a high of $4.56 on May 21 on hopes that ongoing negotiations would lead to a reopening of the strait. But even if prices continue to fall, experts don’t expect them to hit the pre-war average of $3 per gallon any time soon.
First, it will take time for the flow of oil to return to normal levels.
