Gas prices have dropped for the fourth consecutive week and could fall below $3 per gallon, marking the lowest prices in years. However, this may not be a cause for celebration, warns GasBuddy, a fuel-price tracker.
Patrick De Haan, head of petroleum analysis at GasBuddy, noted that growing concerns over tariffs and policy uncertainty are contributing to the declining prices. “Gas prices have continued to drop across much of the country, raising the possibility that the national average could dip below $3 per gallon,” De Haan said. “This could lead to some of the lowest prices seen in years.”
As of Monday, the national average price for gas was $3.02 per gallon, down by 1.3 cents from the previous week. It is 10.6 cents lower than a month ago and 42.4 cents cheaper than a year ago. Despite the decline, De Haan cautioned that falling prices should not be seen as a good sign. “When the economy slows, gasoline demand drops, along with demand for other refined products like diesel and jet fuel,” he explained. “We’ve already seen signs that the coming months may be tough.”
GasBuddy data shows that gas prices briefly dropped to $2.973 per gallon on December 8, 2024, but have not been below this level since May 2021. The lowest price ever recorded by GasBuddy, dating back to 2001, was $1.592 per gallon on December 29, 2008.
De Haan believes that gas prices are likely to stay low for the time being. However, if economic conditions improve, prices may begin to rise again.
The decline in gas prices comes amid fluctuating oil prices, which have remained steady in the upper $60s per barrel. On Monday, oil prices saw an uptick, supported by recent U.S. airstrikes on Houthi rebels in Yemen, which raised concerns about potential disruptions to oil supply in the region. Additionally, optimism over China’s potential economic stimulus contributed to the rise in oil prices.
On Monday, the April West Texas Intermediate crude futures contract rose by 41 cents, or 0.6%, to $67.59 per barrel on the New York Mercantile Exchange. A week earlier, prices had reached their lowest point in six months.
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