The national average price of gasoline fell 6.4 cents in the past week to $3.02 per gallon, according to GasBuddy data.
The average is 13.7 cents lower than a month ago and 14.4 cents cheaper than a year ago.
Diesel prices declined 3.5 cents, bringing the national average to $3.63 per gallon.
For the first time in years, U.S. motorists may soon see the national average gas price dip below $3 per gallon. Patrick De Haan, head of petroleum analysis at GasBuddy, said prices have fallen in most of the country, setting the stage for continued relief at the pump.
“Americans appear to be on the cusp of seeing the national average drop below $3 per gallon and potentially stay there for the first time in years,” De Haan said in the company’s blog. “With well over 40 states seeing gas prices decline and oil plunging below $60 per barrel, we could even see a handful of stations in places like Oklahoma, Texas, or even Wisconsin drop below $2 per gallon in the weeks ahead.”
De Haan also noted that with wages rising and fuel prices falling, consumers are spending the smallest share of their income on gasoline in years — a welcome reprieve after years of volatile energy costs.
Trade tensions and OPEC output
Oil markets were shaken last week after President Trump threatened new tariffs on China in response to restrictions on rare earth exports. The prospect of a renewed trade war sent WTI crude tumbling below $60 per barrel before recovering slightly early Monday to $59.49, down from $61.85 a week earlier. Brent crude traded at $63.32, down from $65.56 last Monday.
UBS commodities analyst Giovanni Staunovo said that ongoing tensions between the world’s two largest economies have weighed on demand expectations. Meanwhile, continued production increases from OPEC+ have added pressure to already soft markets.
According to the U.S. Energy Information Administration’s latest report, U.S. crude inventories rose by 3.7 million barrels during the week ending October 3, 2025, though levels remain about 4% below seasonal norms. The Strategic Petroleum Reserve increased slightly to 407 million barrels.
Gasoline inventories dropped 1.6 million barrels, about 1% below the five-year seasonal average, while distillate stocks fell 2.0 million barrels. Refinery utilization rose to 92.4%, and gasoline demand jumped by more than 400,000 barrels per day, signaling resilient consumer fuel use even as prices decline.
Gas price trends
The most common pump price across the U.S. is $2.79 per gallon, with the median price at $2.85, roughly 17 cents below the national average.
States leading the nation with the lowest prices include Oklahoma ($2.50), Mississippi ($2.62), and Texas ($2.62). On the high end, California ($4.62), Hawaii ($4.46), and Washington ($4.41) remain the most expensive markets.
The largest weekly drops were seen in Ohio (-18.3¢), Michigan (-13.9¢), and Indiana (-13.4¢), while Texas and Washington also posted double-digit declines.