Updated on July 6.
The average regular gas price in the U.S. as of July 6 is $3.797 per gallon, according to AAA.
- One week ago: $3.860
- One month ago: $4.191
- One year ago: $3.146
Despite signing the “memorandum of understanding” on June 17 to formalize a ceasefire, U.S. and Iran soon renewed hostilities with a series of reciprocal strikes.
Talks are paused this week while Iran observes funeral commemorations for slain Supreme Leader Ali Khamenei. Negotiations are expected to resume soon after. Ongoing talks will address the fate of Iran’s store of nuclear material and other issues.
Oil prices began dropping on news of the agreement broke on June 14, and is now trading below $75 a barrel. Gas prices have been easing in recent weeks and the national average for a gallon of regular gas is now below $4 for the first time in months.
On Feb. 28, the first day of the U.S.-Israeli attacks on Iran, the national average price of a gallon of regular gas was just under $3.
But any return to pre-war prices could be as far as a year away as global energy supply recovers from what has been a major disruption.
Shipping movement through the strait has been slowly returning, but remains well below pre-war levels. It had been effectively frozen since the U.S. and Israel launched their attack on Iran on Feb. 28, leading to spiraling energy prices around the world. A ceasefire began on April 8 and has been extended indefinitely while talks continue.
State prices for a gallon of regular range from $3.048 in Indiana to $5.463 in Hawaii, according to AAA.
The text and charts below are updated weekly.
What are gas prices like right now?
As of July 6, gas prices are continuing to tumble after topping $4.50 nationally last month. Oil prices have fallen dramatically, to below $75 a barrel, but remain volatile.
Gas prices were below $3 in 39 states in February. Also as of July 6, Indiana has the lowest average price at $3.048.
Refineries are currently producing a summer blend, which is more expensive than the winter blend.
The U.S. Energy Information Administration says the falling price of crude oil — accounting for half of retail gas prices — helped lower prices at the pump in 2025. On a monthly average basis, the price of Brent crude oil dropped from $79 per barrel in January 2025 to $63 per barrel in December 2025 — its lowest average monthly price since the start of 2021, according to the EIA.
Oil prices spiked after the U.S.-Israeli attack on Iran began on Feb. 28, peaking at over $110 per barrel as oil shipments through the Strait of Hormuz were halted because of the war.
Meet MoneyNerd, your weekly news decoder
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.
» Stay informed:
- Check out NerdWallet's news hub for all the latest.
- Subscribe to one of NerdWallet's free newsletters.
Gas price inflation, explained
Gas prices surged in 2021 and 2022, largely due to two economic disruptions: pandemic-related supply shocks and then Russia’s invasion of Ukraine. The combination of the two hit energy markets hard and prices never recovered to pre-pandemic levels.
Here’s what happened:
- In 2019, before the pandemic, the average per-gallon price of regular gas was $2.601, according to EIA data.
- Following Russia’s invasion of Ukraine, the national average increased before peaking at $5.016 per gallon on June 14, 2022, according to AAA.
- Until the Iran invasion, gas prices had retreated, but hadn’t returned to pre-pandemic levels.
Why gas prices remain higher than they used to be
At this time of year, seasonal factors play a considerable role in raising gas prices. A scheduled switch to summer-blend gasoline temporarily elevates prices through the warm months. Inflation, supply-chain disruptions and gas tax hikes can factor into higher prices, as well. But in the end, elevated oil prices are the main culprit.
The cost of oil typically represents more than half of the cost of a gallon of gasoline, according to the U.S. Energy Information Administration (EIA). So, a major reason gas prices have remained so high is that, until recently, oil prices were higher than they were before the pandemic hit in 2020 and Russia invaded Ukraine in 2022. That’s based on the average monthly price of West Texas Intermediate crude, which is used as the benchmark for oil prices in North America.
For much of the year to date fuel costs had been lower than they were a year ago. That has changed dramatically in the last few weeks. Here’s how gas prices compare today:
As of July 6, the average regular gas price in the U.S. is $3.797 per gallon, according to AAA, which tracks gas prices.
- The price is down from $3.860 a gallon a week ago.
- The price is down from $4.191 per gallon a month ago.
- A year ago, the price was $3.146 per gallon.
Oil prices are still below their June 2022 peak of almost $120 per barrel.
Average gas price per state
The average gas price per state varies widely, with the most expensive state typically costing about $2 more per gallon of regular than the least expensive state.
(Photo by Joe Raedle/Getty Images)
