National Average Price of Gasoline Falls to Lowest Since 2021

Average gas prices could fall below $3/gal in the next week or so

For the fourth consecutive week, the nation’s average price of gasoline has declined, falling 2.2 cents compared to a week ago, and stands at $3.03 per gallon today, the lowest level since May 2021, 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 16.7 cents from a month ago and is 32.3 cents per gallon lower than a year ago. The national average price of diesel has declined 0.4 cents in the last week and stands at $3.52 per gallon.

“While the election has come and gone, gas prices have stayed the course, with the national average price of gasoline declining for a fourth consecutive week as seasonal demand weakens and Americans begin to take refuge from falling temperatures,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While some may be surprised by the declines—some 28 states have average gas prices below $3 per gallon—this was anticipated in our annual Fuel Outlook from last December. Looking back at our outlook provides insight into the current drop and what we expect next. With the median U.S. gas price now at $2.95 per gallon, the lowest since 2021, it appears to be just a matter of time before the national average falls below $3 per gallon for the first time since May 2021, something we’ve already seen for diesel prices, which many Americans will be thankful for as we get closer to Thanksgiving.”

OIL PRICES

With the U.S. Presidential election behind us, energy markets, like stock markets, have been trying to sort out what a Trump election win and a major shift in economic policy will mean for oil demand, production, OPEC cooperation, and many other issues. For now, with the future likely to be more friendly to the oil sector, oil markets have struggled, with WTI crude oil falling back below $70/bbl in early Monday trade to $68.75, down $1.62 per barrel, down from last week’s $71.52 per barrel start, and virtually the same as two weeks ago when oil was holding at $68.64. Brent crude oil was also trading lower in Monday morning trade, down $1.53/bbl to $72.34, a drop from last Monday’s $75.04 per barrel tally. As Trump’s administration, fills out, it could lead to major economic shifts, including possible tariffs and changes to tax policy among wider potential changes, with energy markets still sorting out what it all means as Trump begins to fill his cabinet.

OIL AND REFINED PRODUCTS

Last week’s report from the EIA showed a 2.1 million barrel rise in U.S. oil inventories, which are 5% below the five-year average for this time of year, while the SPR tacked on another 1.4 million barrels, and stands 10.2% above a year ago. Domestic crude oil production continued to hold at a record level of 13.5 million barrels per day. Gasoline inventories rose a slight 400,000 barrels but are 2% lower than normal for this time of year, while distillate inventories jumped 2.9 million barrels, over 7% above a year ago, but 6% below normal for this time of year. Implied gasoline demand, EIA’s proxy for retail gasoline demand, skipped 331,000bpd to 8.83mbpd. Refinery utilization rose 1.4 percentage points as refiners wrap up seasonal maintenance ahead of the winter, with utilization at 90.5%. Total petroleum inventories are down 1.3% from a year ago.

FUEL DEMAND

According to GasBuddy demand data driven by its Pay with GasBuddy™ fuel card, U.S. retail gasoline demand saw a fall of 10.1% for the week ending November 9 (Sun-Sat). Broken down by PADD region, demand fell 10.8% in PADD 1, fell 8.9% in PADD 2, fell 11.8% in PADD 3, fell 17.6% in PADD 4, and fell 10.3% in PADD 5. GasBuddy models U.S. gasoline demand at 7.6 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, $3.09, $2.79, and $3.19 rounding out the top five most common prices.

The median U.S. gas price is $2.91 per gallon, down 5 cents from last week and about 12 cents lower than the national average.

The top 10% of stations in the country average $4.17 per gallon, while the bottom 10% average $2.47 per gallon.

The states with the lowest average prices: Oklahoma ($2.50), Texas ($2.60), Mississippi ($2.65).

The states with the highest average prices: Hawaii ($4.51), California ($4.44), and Washington ($3.92).

Biggest weekly changes: Ohio (-14.1¢), Michigan (-12.6¢), Indiana (-11.3¢), Idaho (-11.0¢), Utah (-10.1¢)

DIESEL PRICE TRENDS

The most common U.S. diesel price stood at $3.49 per gallon, unchanged from last week, followed by $3.39, $3.29, $3.59, and $3.69 rounding out the top five most common prices.

The median U.S. diesel price is $3.42 per gallon, down 5 cents from last week and about 10 cents lower than the national average for diesel.

Diesel prices at the top 10% of stations in the country average $4.32 per gallon, while the bottom 10% average $2.88 per gallon.

The states with the lowest average diesel prices: Oklahoma ($2.99), Texas ($3.00), and Mississippi ($3.15).

The states with the highest average diesel prices: Hawaii ($5.29), California ($4.82), and Washington ($4.33).

Biggest weekly changes: Delaware (+9.7¢), Utah (-7.5¢), South Carolina (+6.8¢),  South Dakota (-6.7¢), Idaho (-6.4¢).