Gas Prices Lowest Since January As July Fourth Approaches

Source: Chris Kahan / AP / MSNBC

NEW YORK — The price of gasoline has dropped to the lowest level in five months, giving drivers some relief ahead of the July 4 holiday.

The national average fell to around $3.40 per gallon on Tuesday. Gas is now below $3 in South Carolina and under $4 in every other state in the continental U.S.

Gas is down 54 cents from its peak of $3.94 in early April thanks to a drop of more than 20 percent in the price of oil. The decline means Americans are spending roughly $200 million per day less at the pump. Yet the savings hasn’t encouraged people to drive — or spend — more this summer. They’re buying about 5 percent less gasoline than they did last year, even though a gallon is 18 cents cheaper.

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