Topline
Gas prices in the U.S. reached a more than three-year low Monday, dipping below the $3.00 mark as Americans prepare to travel for the holidays.
Key Facts
The national average price for a gallon of gas reached $2.97 this week, according to data from GasBuddy, marking its lowest point since May 2021.
Gas prices have fallen for eight consecutive weeks with the most common price encountered by U.S. motorists being $2.79 per gallon.
The American Automobile Association has the national average price for a gallon of gas at $3.01, also calling the price point a three-year low and noting 32 states already have averages below or well below $3.
The national average price of diesel has declined 2.3 cents since last week and is now $3.49 per gallon, GasBuddy reported.
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The drop in gas prices “couldn’t come at a better time for motorists with the holidays upon us,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement, adding the national average could potentially fall another 10 to 15 cents by Christmas.
Where Are Gas Prices Cheapest?
States with the lowest average prices include Oklahoma ($2.52), Mississippi ($2.62), Texas ($2.63), Arkansas ($2.63) and Kansas ($2.67), according to AAA.
Where Are Gas Prices The Most Expensive?
States with the highest average prices include Hawaii ($4.56), California ($4.39), Washington ($3.99), Nevada ($3.66) and Oregon ($3.53), according to AAA.
Key Background
The drop in gas prices follows poor gasoline demand during the week of Thanksgiving, according to GasBuddy, which noted gasoline inventories have increased. The Organization of the Petroleum Exporting Countries Plus recently announced it will push back the start of oil output increases until April following a significant drop in global demand. Americans are benefitting from the dip in gas prices and may continue to enjoy the lowered price points in the leadup to the holidays. Around 65% of Americans are expected to take a road trip at some point between Thanksgiving and mid-January, according to a holiday travel survey by Deloitte.
Further Reading
National Average Drops Below $3, First Time in 1,308 Days (GasBuddy)
An Early Holiday Gift? Gas Prices Plunge to Three-Year Low (AAA)
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