Gas prices in the U.S. have dropped to a six-week low, with the national average for regular gasoline falling to $3.90 per gallon, offering relief to motorists. According to the American Automobile Association (AAA), the current price reflects a continued decline, down from $3.93 per gallon the previous week. GasBuddy analyst Patrick De Haan highlighted that the current rate of decline is faster than in 2022 when gas prices reached a record $5 per gallon, countering recent claims that prices were not falling fast enough.

The downward trend correlates with a recent drop in crude oil prices. West Texas Intermediate (WTI) is trading at $69.41 per barrel, while Brent crude is at $72.67 per barrel. Diesel prices have also decreased significantly, though specific figures for the current week were not detailed in the latest report. The United States Oil Fund (USO) was trading at $111.65 during pre-market trading on Tuesday.

Current Energy Prices

Despite the overall national decline, gas prices remained above $5 per gallon in Pacific states such as California and Washington, with California gas costing $5.48 per gallon. Geopolitical developments remain a focal point for energy markets, particularly regarding the Strait of Hormuz. The Islamic Revolutionary Guard Corps (IRGC) recently warned ships traversing the Strait of Hormuz away from the designated route after a vessel was struck off the coast of Oman. Market participants continue to monitor the situation closely, as any disruption could impact the recent trajectory of falling fuel costs.

President Donald Trump has directed the Department of Justice (DOJ) to investigate major oil companies for failing to reduce gasoline prices in line with declining crude oil costs. Economist Peter Schiff criticized the move on social media platform X, calling it a socialist action similar to policies Trump previously attacked. Schiff noted that Trump had accused former Vice President Kamala Harris of advocating socialism when she proposed banning price gouging on food items during the 2024 Presidential Election campaign. Harris's campaign had stated that such rules would prevent big corporations from unfairly exploiting consumers during crises.

Trump accused oil firms of overcharging customers by not adjusting pump prices despite paying significantly less for oil, stating on Truth Social, "Gasoline prices better start going down a lot faster than what I’m seeing!" The President argued that the sharp drop in crude costs should result in immediate relief at the pump, alleging that customers are being gouged. The directive follows a recent Memorandum of Understanding (MoU) with Iran, which Trump credited for a record-breaking oil flow through the Strait of Hormuz and a subsequent decrease in oil prices.

Economic Perspectives on Price Lag

Nobel laureate economist Paul Krugman argued that the current price lag is a result of a well-documented market pattern rather than corporate malfeasance. Krugman described the phenomenon where fuel markets respond asymmetrically to international shocks. "When there is a global shock that causes the price of crude oil to soar, gasoline prices rise like a rocket," Krugman wrote. "But when the crisis is over and crude prices plunge, the price of gas declines only gradually — it drifts down like feathers."

Chevron Corp Chief Financial Officer Eimear Bonner addressed the pricing concerns, stating that the company expects prices to "come down as things continue to normalize" in the Middle East. Bonner did not provide a specific timeline for the adjustment.

Current Market Data

The national average for regular gasoline was at $3.9180 per gallon on Thursday, according to American Automobile Association (AAA) data. While this figure represents a decrease from $4.515 a month ago, it remains significantly above last year’s $3.224 average. Prices remained above $5 per gallon in Pacific states, with California gas costing $5.5080 per gallon. Global oil benchmarks showed declines, with Brent crude trading 1.52% lower at $75.63 per barrel and WTI crude futures down 1.67% at $71.99 per barrel.

GasBuddy analyst Patrick De Haan indicated that concerns over the Strait of Hormuz could slow the pace of the price drop. He highlighted that the U.S. Strategic Petroleum Reserve (SPR) is set to hit a 43-year low based on upcoming Department of Energy (DOE) data. The reserve stands at approximately 47% of its 714 million barrel total capacity as of late June 2026. De Haan noted practical limits on extraction, estimating 150-170 million barrels as unrecoverable "heel" oil, with operational floors cited around 243 million barrels for emergency needs.