National Average Gas Prices Drop Below $3 for First Time Since 2021

The national average price for a gallon of regular gasoline has fallen below $3 for the first time since May 2021, reaching $2.998 per gallon on Tuesday. This marks a significant decrease in fuel prices, which had hovered near the $3 threshold for several months. The last time gas prices were recorded at this level was on May 24, 2021, when the average was $2.985, according to data from the American Automobile Association (AAA).

Gas prices began trending downward as the Thanksgiving holiday approached, with a notable drop from $3.042 on the day before the holiday to slightly above $3.02 on Thanksgiving. By Sunday, the national average settled at $3.005 before dipping below the symbolic $3 mark on Monday.

The decline in gas prices has been a point of focus for the current administration, which has highlighted this trend as part of its economic strategy. President Donald Trump campaigned on promises of lower gas prices, and the administration has frequently pointed to this achievement in recent months. After record-high prices during the presidency of Joe Biden in 2022, gas prices have gradually decreased, especially in the latter half of 2024. Prices have remained relatively stable this year, fluctuating between $3.02 and $3.21.

Despite the national average dipping below $3, prices vary significantly across the United States. The West Coast consistently reports the highest gas prices, while states in the Gulf Coast region enjoy the lowest. Currently, 31 states are reporting average gas prices below $3 per gallon.

As of Monday, Oklahoma boasts the lowest average gas price in the nation at $2.404 per gallon. Texas follows closely with an average of $2.554, then Arkansas at $2.573, and Mississippi at $2.579. Louisiana rounds out the lowest prices with an average of $2.592.

In contrast, California has the highest gas prices in the country, with an average of $4.578 per gallon. Some counties in California report prices exceeding $5 per gallon, with Mono County approaching $6. Following California, Hawaii has an average of $4.454, and Washington sits at $4.16 per gallon. Other high-cost states include Oregon at $3.785 and Nevada at $3.717.

As the year progresses, the fluctuations in gas prices will continue to be closely monitored, particularly as economic conditions shift and consumer demand evolves. The current lower national average price offers a measure of relief to many Americans as they navigate their budgets amidst broader economic concerns.