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Drivers on the road this Fourth of July holiday will see the cheapest gas prices since 2005, according to a GasBuddy report on Tuesday.
U.S. consumers will pay an average of $2.21 per gallon at the pump, well under the 10-year average of $3.14, according to GasBuddy, an app that helps its 65 million users find the cheapest gasoline prices in the United States, Canada and Australia. The prices are also expected to be lower than prices seen on New Year's Day by 12 cents.
"So many Americans love to hold onto that myth that gas prices go up for the holiday, and yet, here we are. Gas prices down 15 cents a gallon in the last few weeks," GasBuddy senior petroleum analyst Patrick DeHaan said Tuesday on CNBC's "Squawk Box. "
Crude prices were higher Tuesday, but they have been dropping most of this month as oversupply concerns loom and OPEC and its partners try to reduce a global crude glut with production cuts.
OPEC nations and 11 other exporters agreed earlier this year to extend cuts of 1.8 million barrels per day until March 2018. Despite the cuts, markets remain well supplied due to rising output elsewhere.
GasBuddy said although the average price of gas will be at historic lows, the price variance among different states and cities will be at historic highs.
Using data from its users, GasBuddy said 64 percent of travelers said gas prices do not impact their decision to make road trips, while 17 percent are taking to the roads because they believe prices are low.
About 50 to 60 percent of drivers will take road trips of over 500 miles, up 9 percent from last year, DeHaan told CNBC. "Beware of those state lines," he said. "Gas taxes change in every state."
—Reuters contributed to this report.