Gasoline prices in the United States are expected to drop below $3 per gallon just in time for Thanksgiving and the busy holiday travel season. As of Monday, the average price for gas nationwide was $3.071 per gallon, down from $3.191 a month ago and $3.320 a year ago, according to the American Automobile Association (AAA). This marks the lowest average since January, and prices are just a few cents higher than in 2021. Experts predict further declines as West Texas Intermediate crude stays near its lowest point since September.
“Although the election is over, gas prices continue to decline, with the national average falling for the fourth consecutive week,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “This drop is driven by weaker seasonal demand and cooler weather, which is giving drivers some relief.”
De Haan also pointed out that 28 states have already seen gas prices drop below $3 per gallon, as predicted in GasBuddy’s annual Fuel Outlook last December. With the median U.S. gas price now at $2.95 per gallon, the lowest since 2021, the national average is expected to dip below $3 soon, marking the first time since May 2021. Diesel prices have already dropped below that threshold, which is welcome news for drivers ahead of the holidays.
Oil prices, which heavily influence gas prices in the U.S., remain a key factor in this decline. Experts at Standard Chartered predict that U.S. oil production will not surge under President Trump’s policies, with production reaching a record high of 13.40 million barrels per day (mb/d) in August 2024—surpassing the previous high of 13.31 mb/d set in December 2023.
This drop in gas prices comes as a welcome relief for American drivers, who have faced high fuel costs in recent years. AAA forecasts that 79.9 million people will travel at least 50 miles from home during the Thanksgiving holiday, further highlighting the importance of lower fuel prices for holiday travel.
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