INDIANA — Motorists across the United States are celebrating a significant financial reprieve as the national average price of gasoline has fallen below the $3-per-gallon mark for the first time since May 2021, according to data released today by GasBuddy®. This remarkable milestone comes after a week of extensive price declines across every state.
The current average price is the lowest in over 1,660 days, offering a substantial boost to household budgets ahead of the winter holidays.
“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. “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.”
De Haan described the drop as a “welcome break for Americans ahead of the holiday season,” noting that it coincides with the conclusion of refinery maintenance and seasonally weaker gasoline demand.
The dramatic reduction in fuel costs is attributed to a confluence of favorable market conditions:
- Easing Crude Oil Costs: Supported by increased supply from OPEC+ and continued record-setting U.S. oil production.
- Robust Refinery Output: U.S. refineries have returned to strong utilization rates, driving up gasoline inventories.
- Softer Seasonal Demand: As temperatures drop, consumption naturally tapers off.
- Subdued Market Sentiment: This has kept crude oil benchmarks under pressure, relieving retail prices.
Ultra-Low Prices Emerge
The decline has been so steep that GasBuddy is tracking several dozen stations in states like Oklahoma, Colorado, and Texas selling gasoline for $1.99 per gallon or less. Analysts anticipate these ultra-low prices could persist in select areas over the coming months, provided current market trends hold.
De Haan forecasts a positive near-term outlook, suggesting the national average may spend more of the next four weeks below $3 per gallon than above it. “This trend may continue into the winter before prices begin their typical climb in mid-February,” he added. “As we get closer to 2026, the outlook for another friendly year for motorists is strengthening.”
GasBuddy, North America’s trusted source for fuel savings for more than 25 years, recommends that drivers leverage tools like the GasBuddy app to compare prices and find the best deals along their travel routes this holiday season.
