As holiday travelers make plans to hit the road, the cost of gasoline will make those trips a little more pleasant. The national average gasoline price has dipped below $3 a gallon, hitting its lowest point since 2021.
GasBuddy reports the average gas priced dropped by at least three cents a gallon for an eighth straight week, starting the week at $2.97 a gallon. The national average is down 8.7 cents from a month ago and is 17.7 cents per gallon lower than a year ago. The national average price of diesel has declined 2.3 cents in the last week and stands at $3.491 per gallon.
“The national average has finally fallen below $3 per gallon, and it couldn’t come at a better time for motorists with the holidays upon us. One would need to count over 1,300 days since we’ve seen the national average this low, with the affordability of gasoline at its lowest non-COVID level since 2015,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
DeHaan says nearly 110,000 gas stations in 35 states are selling fuel as less than $3 a gallon.
“The good news is that we’ll likely continue to see additional downward pressure on gas prices, with the national average potentially falling another 10 to 15 cents by Christmas,” he added.
Gasoline prices normally fall when the economy shows signs of softening, but by all accounts, the U.S. economy remains fairly strong. GasBuddy says the current drop in gasoline prices is linked to lower oil prices.
OPEC’s production cuts have done little to raise oil prices, which are hovering just under $70 a barrel. Prices rose slightly at the start of the week, a move largely attributed to the uncertainty in the Middle East following the overthrow of the Syrian government.
Highest and lowest prices
To start the week, the cheapest gas prices are in Oklahoma, with a $2.51 statewide average price of regular. Texas has the second-cheapest gas, with a statewide average price of $2.59 a gallon. Mississippi is third-cheapest with an average price of $2.60 a gallon.
Hawaii has the most expensive gas with an average price of nearly $4.56 a gallon. California is second with an average price of $4.35 a gallon. Washington is third with an average price of $3.95 a gallon.