Gas Prices Slide to Levels Not Seen in Years as National Average Breaks $3 Mark
The nationwide cost of gasoline has dipped under $3.00 a gallon, a benchmark the United States hasn’t touched since spring 2021, according to new figures released by GasBuddy. The company called the development a major turning point for drivers as the colder months approach.
Patrick De Haan, who leads petroleum analysis for GasBuddy, highlighted the significance of the sudden downturn. “We haven’t seen the national average fall this low in over four years, and the speed and breadth of the decline are remarkable,” he said, noting that the drop has spread quickly across the country.
Over the past week, average pump prices fell in all 50 states, something GasBuddy described as an unusually broad slide. “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. This is a welcome break for Americans ahead of the holiday season and comes as refinery maintenance season concludes and gasoline demand weakens seasonally,” the company said.
Some of the most dramatic price cuts have appeared in parts of the South and Mountain West. GasBuddy reported that dozens of stations in Oklahoma, Colorado, and Texas are posting prices at $1.99 per gallon or below, signaling that the downward pressure is especially strong in low-cost markets.
De Haan noted earlier that the shift is notable not just for its timing but for what it suggests about the months ahead. “It is pretty compelling to see gas prices this low, falling ahead of Thanksgiving, and it signals what more Americans could experience in the coming months,” he said.
He pointed to multiple forces driving the drop: softer seasonal demand, increased OPEC production, and weakening oil prices globally. He added that while promotional discounts occasionally push prices under $2, this moment marks the first appearance of a true, non-temporary sub-$2.00 pump price in the current market cycle.
De Haan cautioned that the exact price point may still bounce around, but he predicted that more stations in traditionally low-priced states such as Mississippi and Texas—as well as elsewhere along the Gulf Coast—are likely to see similar levels before the typical spring upswing expected in 2026.
The recent relief at the pump is tied closely to broader trends in the oil market. GasBuddy noted that refinery activity has been steady and efficient, helping rebuild fuel stocks as demand naturally slips during the colder months.
West Texas Intermediate crude has been hovering near $58 a barrel in recent trading—a sharp departure from earlier this year and the lowest in several years. GasBuddy said this downturn has been reinforced by consistent monthly increases in OPEC output.
The company explained that the combination of cheap crude, robust refinery production, and competitive pricing among stations—especially across the southern United States—has accelerated the usual winter cooling of retail gas prices.
Though some areas have seen short-term refinery issues, GasBuddy expects that once those problems ease, downward pressure will likely grow in regions such as the West Coast and the Great Lakes, which are often affected by refinery fluctuations.
In its broader assessment, GasBuddy attributes the nationwide decline to a powerful mix of factors: lower crude costs, rising OPEC+ supply, record U.S. oil production, strong refining output, and a seasonal dip in demand. With refineries now operating at high utilization rates and gasoline inventories swelling, the company said market sentiment has also turned bearish, adding further room for retail prices to drift lower.
{Matzav.com}
