The national average price of a gallon of unleaded gasoline fell 2.4 cents to $2.329 for the week ending June 27, according to data from the U.S. Energy Information Administration.
Gasoline prices ahead of Independence Day were at their lowest since 2005, according to AAA, which put the national average at $2.31 per gallon.
Today's price represents a savings of three cents per gallon on the week and two cents per gallon on the month. Year-over-year drivers continue to benefit from noticeable discounts in the price to refuel their vehicles, and prices are down 47 cents per gallon versus this same date last year, according to a AAA release.
This summer's driving season is expected to set new records for gasoline demand and vehicle miles traveled.
Strong demand can put additional pressure on refineries, and their ability to sustain output and keep gasoline flowing to markets directly impacts the price consumers pay at the pump. However, refineries are reportedly increasing output and gasoline supply has more than kept pace with growing demand, according to AAA.
In fact, the refinery utilization rates reached its highest level since April and gasoline inventories posted an increase in the face of these record numbers. Gas prices have fallen for 16 consecutive days, and if the market can remain adequately supplied drivers are likely to continue paying prices unseen for the summer months in more than a decade, according to the group.
Gasoline prices fell mostly across the board, except on the West Coast, and the national price is now 47.2 cents lower than a year ago.
Among the nine regions tracked by the agency, the Midwest registered the biggest decline of 7.9 cents to $2.291. Meanwhile, West Coast gasoline prices headed higher with a 4.4-cent increase to $2.764. Much of the increase came in California. Without that state, the West Coast increased 1.3 cents to $2.48.
Meanwhile, the average price of a gallon of diesel, remained flat at $2.426. Diesel is now 41.7 cents lower than a year ago.