The national average price is below $3 a gallon
of ConsumerAffairs-
The national average gas price fell below $3 per gallon for the first time since December 2024.
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The drop is largely attributed to increased oil production from OPEC and seasonal demand declines.
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Prices may not stay low in all regions due to refinery disruptions and local wholesale price spikes.
The national average price of gasoline has fallen below $3 per gallon for the first time since December 29, 2024. According to GasBuddy, the average price of gas across the U.S. started the week at $2.99 a gallon.
The milestone comes after months of steady declines in fuel costs, offering relief to drivers ahead of the holiday travel season. But analysts caution that prices may not remain at these levels for long, particularly in the Great Lakes region, where a recent refinery fire has pushed wholesale prices higher.
The sharp decline in gasoline prices can be traced primarily to OPECs decision earlier this year to increase oil production, reversing its 2023 policy of output cuts meant to sustain higher prices. Since March 2025, the oil cartel and its allies collectively known as OPEC+ have been steadily ramping up output, raising the prospect of a global crude glut.
That shift has sent oil prices tumbling. Some investment banks now suggest that crude could fall into the $40-per-barrel range by 2026, a level not seen since the early months of the COVID-19 pandemic.
Combined with the seasonal switch to cheaper winter gasoline blends and a drop in fuel demand, the result has been a rapid and widespread drop in retail gas prices nationwide.
By the numbers
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National average: $2.97/gal
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Median U.S. price: $2.82/gal
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Most common price: $2.89/gal
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16 cents lower than a year ago
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295 days since the last time the national average was under $3
One GasBuddy report even noted a cash price of $1.99 per gallon at a station in Evans, Colorado a sign of how dramatically prices have shifted in certain areas.
Global forces drive the decline
This drop is overwhelmingly being driven by the significant increase in oil production from OPEC throughout 2025, Patrick De Haan, head of petroleum analysis at GasBuddy, wrote in the companys blog. That, combined with weaker demand and inflation finally easing, has created the perfect environment for lower prices.
De Haan added that while some may be quick to assign political credit for cheaper fuel, global supply dynamics remain the dominant factor. He noted that 2025 marks the strongest potential for sustained sub-$3 gas prices since 2021.
Looking ahead, GasBuddy forecasts that the national average could dip into the $2.80s per gallon by years end, provided oil prices stay low and demand continues to soften. Seasonal factors, including reduced travel after Thanksgiving and the lingering effects of winter-grade gasoline, could further ease prices in most parts of the country.
Still, regional volatility remains likely. Areas impacted by refinery outages or supply disruptions could see short-term spikes even as the broader national average trends lower.
Posted: 2025-10-21 11:19:09
