National Average Returns to Decline, Back Below $3/gal

National average falls to $2.98/gal, but it will likely be short-lived

For the first time in 3 weeks, the nation’s average price of gasoline has declined, falling 3.0 cents compared to a week ago, and stands at $2.98 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 4.9 cents from a month ago and is 11.8 cents per gallon lower than a year ago. The national average price of diesel has decreased 0.5 cents in the last week and stands at $3.473 per gallon.

“After a few weeks of rising gas prices, the national average has reversed course, declining as we close out 2024,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “2024 will mark the second consecutive year of a decline in the national average. Tomorrow, GasBuddy will release the 2025 Fuel Price Outlook, offering insights into what motorists can expect in the year ahead. In the week ahead, we’ll likely see gas prices fall in some states, while the Great Lakes region may experience another price cycle. Overall, I expect the national average to remain mostly stable. Motorists interested in GasBuddy’s 2025 Fuel Price Outlook can visit our blog or social media pages on Tuesday for a detailed month-by-month breakdown of gas and diesel prices, along with forecasts for all 50 states.”

OIL PRICES

WTI crude oil prices experienced modest gains last week, rising approximately 1.4% to settle at $70.55 per barrel on Friday. Earlier in the week, prices were supported by optimism regarding China’s economic growth, following reports that Chinese authorities plan to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025 to stimulate the economy. Midweek, the market received a further boost from data indicating a larger-than-expected drawdown in U.S. crude inventories, suggesting increased demand during the holiday season. However, gains were tempered by a stronger U.S. dollar, which makes oil more expensive for holders of other currencies, potentially dampening demand. In early Monday trade, WTI crude oil edged down by 5 cents to $70.55 per barrel, while Brent crude oil eased by 8 cents to $74.09 per barrel, as investors awaited economic data from China and the U.S. to assess future demand prospects.

OIL AND REFINED PRODUCTS

Last week’s report from the EIA showed a 4.2 million barrel decline, while the SPR tacked on another 300,000 barrels, and domestic oil production fell 19,000bpd to 13.585 million barrels. Gasoline inventories rose 1.6 million barrels while distillate inventories fell 1.7 million barrels. Implied gasoline demand, EIA’s proxy for retail gasoline demand, rose 80,000bpd to 9.01 million. Refinery utilization rose 0.7 percentage points to 92.5%, while gasoline production rose to 9.9 mbpd, while distillate production rose to 5.3 mbpd.

GAS PRICE TRENDS

The most common U.S. gas price encountered by motorists stood at $2.99 per gallon, unchanged cents 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 $2.89 per gallon, unchanged from last week and about 9 cents lower than the national average.

The top 10% of stations in the country average $4.07 per gallon, while the bottom 10% average $2.46 per gallon.

The states with the lowest average prices: Oklahoma ($2.51), Mississippi ($2.55), Texas ($2.59).

The states with the highest average prices: Hawaii ($4.47), California ($4.27), and Washington ($3.81).

Biggest weekly changes: Ohio (-9.9¢), Indiana (-8.5¢), Michigan (-7.6¢), Washington (-7.3¢), Utah (-5.8¢)

DIESEL PRICE TRENDS

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

The median U.S. diesel price is $3.39 per gallon, unchanged from last week and about 8 cents lower than the national average.

Diesel prices at the top 10% of stations in the country average $4.27 per gallon, while the bottom 10% average $2.90 per gallon.

The states with the lowest average diesel prices: Oklahoma ($2.98), Texas ($3.06), and Mississippi ($3.10).

The states with the highest average diesel prices: Hawaii ($5.24), California ($4.75), and Washington ($4.25).

Biggest weekly changes: Colorado (-5.7¢), Utah (+5.3¢), Connecticut (-4.3¢), Alaska (+4.0¢), Texas (+3.8¢).