Gas prices have seen a significant decline, reaching their lowest level since May 9, 2021. According to Patrick De Haan, Head of Petroleum Analysis at GasBuddy, the average price nationwide has fallen to $2.961 per gallon, marking a drop that has not been seen in 1,664 days. This reduction in prices comes at an opportune time as approximately 82 million Americans prepare to travel for the Thanksgiving holiday, providing much-needed financial relief for consumers during a time of inflationary pressures and economic caution.
On the same day, AAA reported a slightly higher nationwide average gas price of $3.022 per gallon, with significant variations across states. California reported the highest average at $4.567 per gallon, while Oklahoma had the lowest at $2.454 per gallon. Interestingly, some locations in Texas and Oklahoma even have gas priced below $2 per gallon, according to ABC News.
The recent drop in gas prices can be attributed to several factors, including a sharp decline in global oil prices, which have fallen about 17 percent since June. Refineries have also completed their seasonal maintenance, allowing for increased fuel production. This, coupled with a decrease in travel demand as summer wanes, has significantly contributed to the lower prices experienced at the pump.
Despite these favorable prices, a YouGov poll conducted for CBS News indicates a disconnect between perceived improvements in gas prices and economic sentiment. Among the surveyed adults, 33 percent cited the economy as the most critical issue to evaluate President Donald Trump, with a vast majority (77 percent) believing he has not done enough to address economic concerns.
De Haan noted in a blog post that several factors are driving the decrease in prices, including lower seasonal demand and increased oil production from OPEC. Although some gas stations have offered temporary promotions leading prices under $2, it is expected that such prices may vary while more states see similar declines prior to the anticipated price rebound in spring 2026.
As for what lies ahead, analysts suggest that gas prices may continue to decline as refineries complete their maintenance cycles and fuel demand decreases further during the winter months. While the reduction in gas prices is welcomed by consumers, its longer-term effects on the economy, particularly amid persistent inflation worries, will require close monitoring by policymakers and industry stakeholders in the upcoming months. The current landscape may suggest a hopeful outlook for consumers, providing them relief from rising living costs as they navigate through a challenging economic environment.