2025 marks the smallest fuel burden on household budgets in two decades.
September 16, 2025
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In 2025, drivers are expected to spend less than 2% of disposable income on gas the smallest share in two decades.
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The average price of regular gasoline is $3.12 per gallon, down compared to last week, last month, and last year, with most states seeing decreases except parts of the West Coast facing infrastructure-related increases.
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Prices range from as low as $2.68 in Mississippi to as high as $4.64 in California and Washington, though the median U.S. price is $2.95 per gallon, with many common prices under $3.
While restaurant bills can put a dent in your wallet, paying for the gasoline to get you to the restaurant wont. A report by the Energy Information Administration found that drivers are expected to spend the smallest share of their disposable income on gasoline this year than at any time in the past two decades.
The agencys report said less than 2% of people's personal disposable income will be spent on gasoline in 2025, down from an average of 2.4% over the previous decade. Excluding 2020, when the pandemic made gas incredibly cheap, thats the lowest percentage since 2025.
According to GasBuddy data, the national average price of gasoline is down 3.6 cents in just the last week and stands at $3.12 per gallon.
Thats 1.8 cents lower than a month ago and is 2.8 cents per gallon lower than a year ago. The national average price of diesel has decreased 2.6 cents in the last week and stands at $3.658 per gallon.
The West Coast is still expensive
While gas prices fell in more states than they rose last week, the West Coast continues to face challenges, with Oregon and Washington seeing some of the largest increases due to regional infrastructure issues, Patrick De Haan, head of petroleum analysis at GasBuddy, said in the companys blog.
The good news is that the transition to cheaper winter gasoline begins across most of the nation, and with improvements underway in the West Coast market, I expect that average gas prices will continue to decline in the weeks ahead in most states assuming hurricane season remains quiet.
Drivers have benefited in two ways. First, gas prices have remained stable for months, making it easier to budget for fuel. Second, adjusted for inflation, gas prices are about the same as they were five decades ago.
In 1970, the national average retail price of regular gasoline in the United States was about $0.36 per gallon. To put that in perspective, adjusted for inflation, thats roughly $2.80$3.00 per gallon in todays dollars.
Below $3 a gallon
According to GasBuddy, the most common U.S. gas price encountered by motorists is $2.99 per gallon, unchanged from last week, followed by $2.89, $2.79, $3.09, and $2.69, rounding out the top five most common prices.
The median U.S. gas price is $2.95 per gallon, down 4 cents from last week and about 17 cents lower than the national average.
The top 10% of stations in the country average $4.45 per gallon, while the bottom 10% average $2.58 per gallon.
The states with the lowest average prices: Mississippi ($2.68), Oklahoma ($2.73), and Arkansas ($2.75).
The states with the highest average prices: California ($4.64), Washington ($4.64), and Hawaii ($4.45).