GasBuddy reported that the national average price of gasoline has fallen below $3.00 per gallon for the first time since May 2021.
"We haven't seen the national average fall this low in over four years, and the speed and breadth of the decline are remarkable," said Patrick De Haan, head of petroleum analysis at GasBuddy.
The company reported the drop as a major milestone for drivers heading into the winter season and noted that average prices declined in all 50 states during the last seven days.
"Every single state has seen relief at the pump over the past week, a rare feat that underscores how challenging the fundamentals are for gasoline prices right now. This is a welcome break for Americans ahead of the holiday season and comes as refinery maintenance season concludes and gasoline demand weakens seasonally."
GasBuddy said several dozen stations in Oklahoma, Colorado, and Texas are selling fuel at $1.99 per gallon or less.
"It is pretty compelling to see gas prices this low, falling ahead of Thanksgiving, and it signals what more Americans could experience in the coming months," De Haan said in an earlier update.
He said lower seasonal demand, falling oil prices, and rising OPEC output are pushing prices down.
He added that while a few stations have dipped below $2.00, through short-term offers, this is the first time a regular sub-$2.00 pump price has appeared.
De Haan said prices at this level may fluctuate, but more locations in low-cost states like Texas and Mississippi, and others across the Gulf region are likely to follow before the spring rebound expected in 2026.
GasBuddy said falling oil prices and strong refinery output have eased pressure on consumers in recent months.
West Texas Intermediate crude recently traded near $58 per barrel.
The company said that level is sharply lower than earlier this year and is the lowest in several years, supported by steady monthly increases in OPEC production.
GasBuddy said these conditions have accelerated the seasonal decline in retail prices, especially across the southern United States, where station competition remains strong.
The company said some areas have faced temporary refining challenges but expects more downward pressure on prices in the Great Lakes and West Coast regions once those issues are resolved.
GasBuddy attributed the broader national price decline to easing crude costs, additional supply from OPEC+, record U.S. oil production, strong refinery output, and softer seasonal demand.
The company said refineries have returned to high utilization rates, and gasoline inventories are rising at a time when consumption naturally tapers.
GasBuddy also said weak market sentiment has kept crude benchmarks under pressure and continues to give additional room for lower retail fuel prices.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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