U.S. gasoline prices fall below $4 a gallon for the first time since July

The U.S. national average price of regular gasoline fell to $3.9788 a gallon on November 10, below $4 for the first time since July, according to the American Automobile Association, or AAA. The average was down about $0.17 from a week earlier and $0.39 from a month earlier.^[1]

At the national average, the monthly decline makes a 15-gallon fill-up about $5.85 cheaper. If lower prices persist, households that need to drive can put more income toward other purchases or savings; retailers and restaurants benefit to the extent that households spend the money saved.^[1]

Delivery and home-service businesses using gasoline-powered vehicles also get relief when they refuel. Lower fuel spending can improve profit margins if customer charges stay unchanged; the benefit depends on fuel use and whether businesses pass the savings to customers.^[1]

Impact

• Retail and restaurantsOpportunity

  Businesses selling optional purchases and meals could benefit as driving households spend less at the pump. Any sales lift depends on consumers choosing to spend the savings.^[1]

• Gasoline-powered delivery and home servicesOpportunity

  Operators using gasoline-powered vehicles can reduce costs as they refill. Higher fuel use means larger potential savings, which businesses can retain as profit or use to offer customers lower prices.^[1]

What to watch next

• The November 12 EIA gasoline inventory release at 17:00 UTC, covering the week ended November 6, will help show whether supplies are becoming more plentiful, providing context for lower pump prices.