Gas prices across the United States are falling just in time for one of the year’s busiest travel weekends. As Americans kick off their Thanksgiving journeys, more than half of U.S. states are now seeing average fuel prices below $3 per gallon, offering some relief at the pump.
Nationally, the average sits at $3.05 per gallon, matching last year’s level, according to AAA. However, in several regions—particularly in the Midwest and along the Gulf Coast—prices have dipped under the $3 mark. Some stations are even selling regular unleaded for as low as $1.99 per gallon, a level not sustainably seen since 2021.
Why Gas Prices Are Falling
A mix of factors is pushing prices downward:
- Seasonally lower demand after the summer driving period
- Cheaper winter gasoline blends, which are less costly to produce
- Declining crude oil prices as global markets ease
GasBuddy’s head of petroleum analysis, Patrick De Haan, said he expects the national average to fall below $3 per gallon within about a week. If that happens, the U.S. could close out the year with some of the lowest gas prices in nearly four years.
Four stations in Midwest City, Oklahoma, recently reported pump prices at $1.99, a sign that further declines could spread as the holiday season approaches.
Oil Prices Continue to Slide
Crude oil has been trending lower heading into year-end. On Tuesday, both Brent and West Texas Intermediate (WTI) futures dropped more than 2% amid discussions of a potential peace plan between Ukraine and Russia—an event that could shift global supply dynamics.
Tom Kloza, chief oil analyst at Gulf Oil, noted that the next couple of months may be the “most inhospitable climate for U.S. gasoline prices,” suggesting continued weakness in crude and further price declines at the pump.
Both Brent and WTI are now down more than 17% since the start of the year.
With falling demand, softer oil markets, and cheaper seasonal blends, drivers may see even more savings as the holiday season continues.
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