Lower gasoline prices could be the new norm for another year, market experts say.
U.S. gasoline prices dropped below $3 per gallon for the first time in more than four years, according to the American Automobile Association.
As of Dec. 2, the national average for a gallon of gas was $2.998—the lowest since May 2021. Pump prices have also fallen about six cents in the past week and are down from a year ago.
Drivers in 18 states, including Colorado, Mississippi, Nebraska, and Texas, are paying less than $2.75 per gallon, as fuel costs continue to ease nationwide.
Oklahoma motorists are enjoying the biggest break at the neighborhood gas station, with a gallon of gas costing $2.40.
Still, the West Coast continues to contend with high gas prices. California, for example, is seeing pump prices remaining above $4.50 a gallon as the Golden State grapples with refinery issues.
Fuel-tracking platform GasBuddy reported on Dec. 1 that the national average fell below $3.
“Nearly every state saw average gas prices fall heading into Thanksgiving, with the national average dipping below $3 per gallon for several consecutive days—falling to $2.95 per gallon over the weekend, the lowest level since May 2021,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
Falling oil prices, which account for about half of gasoline costs, have largely driven the trend. Economic uncertainty, ample production, slowing demand, and easing geopolitical tensions have contributed to oil’s descent over the past few months.
This could set the stage for even lower gas prices ahead of Christmas, De Haan says.
“Some stations are already charging under $2 per gallon, and more could follow as the holiday season begins—bringing timely relief for U.S. drivers,” he added.
This year, a barrel of West Texas Intermediate crude oil has plunged 18 percent, to around $59 on the New York Mercantile Exchange. RBOB gasoline futures—a proxy for wholesale gasoline trends because the product is a basis component for gasoline—slumped below $2 last month, and are down 8 percent year to date.
This could set the stage for even lower gas prices ahead of Christmas, De Haan says.
“Some stations are already charging under $2 per gallon, and more could follow as the holiday season begins—bringing timely relief for U.S. drivers,” he added.
This year, a barrel of West Texas Intermediate crude oil has plunged 18 percent, to around $59 on the New York Mercantile Exchange. RBOB gasoline futures—a proxy for wholesale gasoline trends because the product is a basis component for gasoline—slumped below $2 last month, and are down 8 percent year to date.
By Andrew Moran
