U.S. gasoline prices drop to lowest level in four years, with significant price differences across states

Gasoline prices in the United States dropped to $3.00 per gallon last month (approximately $0.8 per liter), reaching the lowest level in the past four years. According to Bloomberg reports, this price decline is the result of a combination of seasonal factors and fluctuations in the crude oil market.

Softening of Crude Oil Prices as the Main Cause

Traditionally, gasoline prices tend to adjust after the summer travel season ends. However, the recent price stability is largely influenced by the sluggish international crude oil market. Supply-side pressures and demand slowdown have kept fueling costs relatively restrained.

Effects and Limitations of the Trump Administration’s Policies

President Donald Trump succeeded in lowering the national average gasoline price by about 13 cents within approximately 10 months of starting his second term. This indicates that policies emphasizing fuel cost reduction have yielded some results.

However, there remains a $1 gap from his campaign promise of “less than $2 per gallon.” The low-price level was achieved during the COVID-19 pandemic lockdown period in 2020, when citizens’ mobility sharply decreased.

Significant Regional Price Disparities

Within the United States, gasoline prices vary greatly by state, reflecting regional characteristics. California maintains an average of $4.56 per gallon, a high level, while Texas continues to have significantly lower prices at $2.57 per gallon, highlighting clear differences in price structures due to geographic and economic factors.