Gasoline prices drop below $4 at Wyoming pumps

The average price of a gallon of regular gasoline fell below $4 on Tuesday.

According to AAA, the national average for regular fuel is currently $3.94. This marks the first time prices have dipped under the four dollar mark in months. The cost has decreased by about 40 cents over the past month, with much of that reduction occurring in the last two weeks.

Patrick De Haan, head of petroleum analysis at GasBuddy, told readers in an industry newsletter that the recent election is not the cause of the drop. He described the relief as a result of seasonal shifts rather than political changes. Fall typically brings lower gas prices because fewer people drive in colder weather. This decrease in demand leaves more gasoline available on the market.

Refineries also contribute to the lower prices by finishing their annual maintenance by late fall. This adds additional fuel to the supply. The type of gasoline on the market also becomes cheaper. Refineries produce summer and winter blends. The winter blend uses more butane to help engines start in freezing weather, which lowers its cost. The switch to winter blend usually happens around September 15, but the Environmental Protection Agency and the Department of Energy moved the date to September 1 this year due to high prices caused by the war in Iran.

Jorge León, head of geopolitics at Rystad Energy, identified the falling price of Brent crude oil as the main driver of the decline. Brent crude, used to make gasoline, diesel, and jet fuel, has dropped to about $90 a barrel. This decrease is due to more oil coming out of the Middle East via pipelines and diplomatic efforts between the United States and Iran. León noted that this progress could reverse if the war escalates. He warned that President Trump might seek further military action to regain negotiating leverage before Democrats take control of Congress in January. If escalation occurs, the recent oil price decline could quickly reverse.

Congressional Democrats support ending the war in Iran and can withhold additional war funding or hold back confirmations of key officials. Jaime Brito, executive director of refining and oil markets for Dow Jones Energy, said that prices would not fully normalize until the global oil supply chain recovers. Ships currently taking long alternative routes to avoid the Strait of Hormuz would need to return to normal routes. Refineries would then need to pump out enough fuel to meet global demand and replenish depleted stockpiles. This process could take months after a lasting peace deal.

AAA noted that while $4 a gallon may seem like a bargain, current gasoline prices are still the highest they have been at this time of year.