The national average price for gasoline is approaching the $3 mark, with industry experts suggesting that it could soon fall below this threshold. As of Wednesday, the average price stood at approximately $3.07 per gallon, marking a decrease of about 10 cents from the previous month and nearly 15 cents from the same time last year, according to AAA.
Patrick De Haan, the head of petroleum analysis at GasBuddy, highlighted that Americans are on the verge of experiencing gas prices dip below $3.00 per gallon for the first time in several years. This price drop is attributed to a nationwide trend where gas prices have declined across a majority of states.
Over 40 states are currently seeing lower gasoline prices, alongside a drop in oil prices, which have fallen below $60 per barrel. De Haan expressed optimism about the trend, indicating that if the national average reaches the noted $2.99 mark, it could lead to even further downward movement in prices.
The financial relief for consumers comes at a time when wage growth is also on the rise, allowing Americans to allocate a smaller percentage of their income towards gasoline expenses than they have in recent years. This easing financial strain is the lightest it’s been since 2005.
States with the cheapest gas on Wednesday were Texas at $2.65, Wisconsin at $2.67, and Arkansas at $2.64, while the most expensive prices were seen in California at $4.65, Hawaii at $4.48, Washington at $4.46, and Oregon at $4.07.
The factors contributing to the relief at the pump include a decrease in demand following the summer travel season, as well as refineries transitioning to a more economical winter fuel blend. NBC’s business correspondent Brian Cheung noted that the shift to winter fuel, which is cheaper to produce, and the diminished number of drivers on the roads have both played roles in reducing gas prices.
Additionally, the Energy Information Administration (EIA) has projected that by 2025, Americans will spend less than 2% of their disposable income on gasoline, a decrease from an average of 2.4% over the past decade and the lowest share since 2005, outside of 2020. This trend suggests a bright outlook for consumers as energy costs continue to moderate.