Gas Prices Decline to Levels Not Seen in America Since 2021 | Carscoops

      Low crude prices and weak demand have caused pump prices to fall below $3 for the first time this decade.

      The national average for a gallon of regular gasoline has dropped to under $3, largely due to a significant decrease in crude oil prices. U.S. gasoline prices haven't been this low since the spring of 2021.

      This is great news for those who get anxious when their low fuel light activates or when they realize their wallet is empty during refueling. Gas prices in the U.S. have finally fallen below $3 a gallon, a figure that many drivers thought would never return.

      According to AAA, the national average for a gallon of regular gas is now $2.998, the lowest price since spring 2021.

      Related: The Trump Administration Advocates for a Shakeup in Fuel Economy, Potentially Vast Implications

      For those who have been refueling since the panic of $5 prices following the Ukraine invasion, this decline may feel like unearthing a forgotten $20 bill from last winter's coat.

      An impressive eighteen states are currently enjoying prices below $2.75, with some, like Oklahoma, even seeing prices under $2.50. However, other areas are not as fortunate.

      Drivers in California still face costs exceeding $4.50, with the rest of the West Coast close behind. If you seek cheaper gas, you might need to head inland for now.

      Declining Crude and Flat Demand

      So what’s behind this abrupt decrease? The credit primarily goes to crude oil prices, which have been plummeting faster than a depreciating luxury car. A barrel of U.S. crude is currently around $59, significantly lower than last year's $70 level and far from the $80+ spike experienced in 2022.

      OPEC has increased production, U.S. output continues to rise, and demand has remained stagnant. With supply outstripping demand, fuel prices were unlikely to remain high for long.

      Former President Trump has been celebrating the lower energy prices, reminding voters that affordable gas is one of his key commitments. While it’s true that prices are down compared to last year, they remain approximately a dollar above the $2 mark he frequently claims is just ahead, as noted by Bloomberg.

      This price point was last observed in 2020, when Americans were confined at home during the COVID pandemic, and gas stations saw tumbleweeds rolling past their pumps.

      Source: AAA