NEW YORK (June 26, 2012)—The average price of gasoline has dropped to its 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, dropping 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 selling for less than $3 a gallon in South Carolina and less than $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, but the savings aren’t encouraging 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.