Gas prices ease up on Fourth of July travelers, with most Americans paying under $4 per gallon

In the lower 48 states, drivers in Indiana will be paying the least on Thursday, at $3.13 per gallon, and drivers in California will be paying the most, at $5.40 per gallon.

By Kevin Killough

Published: July 2, 2026 8:24am

The average price of regular gasoline in the U.S. dropped to $3.84 per gallon on Thursday, giving drivers some relief ahead of the Fourth of July weekend.

The average price Thursday was $0.45 per gallon less than it was a month ago, according to AAA, and around $0.08 per gallon less than it was a week ago.

Indiana drivers will be paying the least, at $3.13 per gallon, and drivers in Hawaii will be paying the most, at $5.49 per gallon. The next highest is California, where drivers will pay $5.40 per gallon to fill up.

In the wake of the signing of an interim peace agreement between the U.S. and Iran, oil prices dropped from the mid $70s per barrel to just over $67 per barrel on Thursday.