National Gas Price Average Plunges Below $3 for First Time Since 2024

American drivers are getting a major break at the fuel pump. The national average price for a gallon of gasoline has officially fallen below the $3.00 mark. This is the first time prices have been this low since late last year.

This price drop provides significant relief for household budgets. According to GasBuddy, the drop occurred on a recent Sunday. The current price level has not been consistently seen since May of 2021.

Key Factors Behind the Price Collapse

OPEC+ has reversed its previous strategy of cutting oil production. The group has instead been steadily increasing output since March. This decision has fueled expectations of a potential global crude oil surplus.

Some major investment banks are now warning that oil prices could fall into the $40-per-barrel range in 2026. This increased supply is a primary driver of lower prices at the pump. The national median gas price is now an even more attractive $2.82 per gallon.

What Drivers Can Expect Next

Analysts project that seasonal factors will continue pushing prices down. The national average could potentially dip into the $2.80s by the end of the year. This is due to the seasonal switch to cheaper winter-blend fuel and lower consumer demand.

However, the relief may not be uniform across the country. GasBuddy has warned that prices are expected to rise in the Great Lakes region. A recent refinery fire there has boosted local wholesale gasoline prices.

The current national gas price average offers the strongest potential for extended sub-$3 fuel since 2021. This trend provides a welcome financial reprieve for millions of Americans.

Info at your fingertips

How long are gas prices expected to stay below $3?

GasBuddy analysts believe seasonal factors will keep prices low into the new year. The national average could potentially reach the $2.80s by December. However, regional volatility may cause some areas to see prices climb back up sooner.

Why are gas prices falling so sharply now?

The main reason is a shift in global oil production. OPEC+ has been increasing output, leading to expectations of an oil surplus. This increased supply directly lowers the cost of crude oil, which is the main component of gasoline.

Are gas prices lower than they were a year ago?

Yes, current prices are significantly lower. The present national average is about 16 cents per gallon cheaper than the average price recorded at this time one year ago. This represents considerable year-over-year savings for drivers.

Is any part of the country seeing higher prices?

Yes, the Great Lakes region is an exception. A refinery fire last week disrupted supply and boosted wholesale costs in that area. Drivers in states like Michigan and Ohio may not see the same level of savings as the rest of the nation.

What was the lowest gas price reported recently?

One station in Evans, Colorado, reported a cash price of $1.99 per gallon to GasBuddy. This is an extreme example and not representative of the national trend. The most common price found across the country is currently $2.89.