U.S. gasoline prices cheapest since January

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

The national average fell below $3.40 per gallon on Tuesday. It has fallen steadily since peaking at $3.94 in April as oil prices dropped and supplies of summer-grade gasoline grew around the country. Gas is now below $3 in South Carolina and under $4 in every other state in the continental U.S.

Altogether, the drop in gasoline prices should save Americans roughly $200 million per day at the pump. Yet the savings hasn't encouraged motorists to drive — and spend — more this summer. Motorists are buying about 5 percent less gasoline than they did last year, and consumer confidence fell again this month.