American drivers could see July 4 gas prices drop to 2.89/gallon nationally, saving households 45/month on average, according to GasBuddy projections.
Regional Price Forecasts:
| Region | Current Avg. | July Projection | Savings |
|---|---|---|---|
| West Coast | $3.89 | $3.29 | $0.60 |
| Midwest | $3.34 | $2.89 | $0.45 |
| Gulf Coast | $3.12 | $2.69 | $0.43 |
| Northeast | $3.56 | $3.09 | $0.47 |
Inflation Relief:
The CPI could decline 0.6 percentage points by Q3, with transportation costs falling 3.2%.
Caveats & Risks:
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Hurricane Season: A major Gulf storm could reverse price trends.
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Refinery Margins: Crack spreads narrowing may limit consumer savings.
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Ethanol Shortages: Corn prices at $6.50/bushel threaten blending economics.
Consumer Impact:
“This is a lifeline for low-income families,” said AAA’s Jeanette McGee. “But volatility remains the norm.”
