National Average Dips But Could Be Short-Lived on Trade Optimism

The nation’s average price of gasoline has returned to a decline, falling 4.2 cents compared to a week ago and stands at $3.08 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 8.6 cents from a month ago and is 50.6 cents per gallon lower than a year ago. The national average price of diesel has decreased 2.7 cents in the last week and stands at $3.473 per gallon.

“Even with oil prices jumping more than $4 per barrel compared to last week, the national average price of gasoline has resumed its decline as refineries wrap up seasonal maintenance and prepare to boost output,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Forty states have seen average gasoline prices fall over the last week, while just ten have seen increases—most notably on the West Coast, where another refinery fire in Northern California once again disrupted gasoline production. As we approach Memorial Day, gas prices may see some minor fluctuations, but for now, I don’t expect any significant changes to the national average, with prices staying near their lowest seasonal level since 2021. However, with de-escalation in the trade war between the U.S. and China, we could see oil jumping on the optimism, which could push gas prices up slightly in the weeks to come.”

OIL PRICES

On news of a breakthrough between the U.S. and China on trade, oil prices were jumping on hopes that it could signal less of an economic slowdown between the two nations. In overnight trade, a barrel of West Texas Intermediate crude oil was last up nearly 3%, or $1.67 per barrel to $62.69 per barrel, up sharply from last Monday’s $57.47 fetch. Brent crude oil was also trading higher in overnight trade, up $1.67 to $65.58 per barrel, up from $60.51 per barrel last Monday. Oil markets have been closely watching developments on the U.S. trade situation, as tariffs could negatively impact growth in the economy and also oil consumption. With tariffs being eased, it signals a likely improvement in trade and market confidence, sending oil higher. Also, a potential nuclear deal between the U.S. and Iran remains on the table, which could limit oil’s upside, as well as OPEC+’s decision to raise production by over 400,000 barrels starting in June.

OIL AND REFINED PRODUCT SUPPLIES

The EIA’s Weekly Petroleum Status Report for the week ending May 2, 2025, showed U.S. oil inventories fell by 2.0 million barrels, about 7% below the seasonal average for this time of year, while the SPR rose 600,000 barrels to 399.1 million. Gasoline inventories rose by 0.2 million barrels and stand 3% below the five-year seasonal average, while distillate inventories fell 1.1 million barrels and are about 13% below the five-year seasonal average. Refinery utilization rose 0.4 percentage points to 89.0%, while implied gasoline demand, EIA’s proxy for retail demand, fell 381,000 bpd to 8.717 million barrels per day.

GAS PRICE TRENDS

The most common U.S. gas price encountered by motorists stood at $2.99 per gallon, unchanged from last week, followed by $2.89, $2.79, $2.69, and $3.09, rounding out the top five most common prices.

The median U.S. gas price is $2.91 per gallon, down 8 cents from last week and about 17 cents lower than the national average.

The top 10% of stations in the country average $4.67 per gallon, while the bottom 10% average $2.53 per gallon.

The states with the lowest average prices: Mississippi ($2.61), Oklahoma ($2.64), and Louisiana ($2.66).

The states with the highest average prices: California ($4.84), Hawaii ($4.45), and Washington ($4.25).

Biggest weekly changes: Florida (-17.4¢), Ohio (-16.8¢), Michigan (-14.7¢), Indiana (-13.1¢), California (+12.2¢)

DIESEL PRICE TRENDS

The most common U.S. diesel price stood at $3.29 per gallon, unchanged from last week, followed by $3.49, $3.39, $3.59, and $3.19, rounding out the top five most common prices.

The median U.S. diesel price is $3.36 per gallon, down 3 cents from last week and about 10 cents lower than the national average.

Diesel prices at the top 10% of stations in the country average $4.66 per gallon, while the bottom 10% average $2.88 per gallon.

The states with the lowest average diesel prices: Louisiana ($3.06), Texas ($3.06), and Mississippi ($3.09).

The states with the highest average diesel prices: Hawaii ($5.23), California ($4.92), and Washington ($4.42).

Biggest weekly changes: Florida (-9.2¢), New Mexico (-6.2¢), Oklahoma (-5.7¢), Colorado (+5.6¢), Texas (-5.2¢)