Gas prices in the United States have fallen to their lowest level since May 9, 2021, with the national average dipping below $3 per gallon on Friday morning, according to GasBuddy Head of Petroleum Analysis Patrick De Haan.
“WOAH! Cheaper gas! According to GasBuddy data, average U.S. gas prices have dropped to their lowest level in 1,664 days (May 9, 2021) at $2.961/gal this morning,” De Haan wrote on X.
Why It Matters
With nearly 82 million Americans traveling for the Thanksgiving holiday, the national average price of gasoline has fallen to its lowest point in more than four years, based on GasBuddy data. The drop offers meaningful financial relief for drivers, but it comes against a backdrop of lingering inflation concerns and broader economic uncertainty, creating a mixed picture for household budgets and overall economic sentiment in late 2025.
What To Know
On Friday morning, GasBuddy data showed the nationwide average gas price at $2.961 per gallon, while AAA reported a slightly higher national average of $3.022 per gallon.
California currently has the highest average gas prices at $4.567 per gallon, while Oklahoma posts the lowest average at $2.454 per gallon.
Twenty-eight states, including Oklahoma, New Hampshire, and Georgia, are now seeing average prices below $3 per gallon. In some parts of states like Texas and Oklahoma, fuel is available near $2 per gallon, ABC News reported. Hawaii’s statewide average stands at $4.455 per gallon, according to AAA.
The sharp decline in gas prices is largely tied to a significant drop in global oil prices. The global benchmark Brent crude has fallen about 17 percent since June, ABC News reported. At the same time, refineries have wrapped up seasonal maintenance and increased output, while demand has eased following the peak summer travel season. Together, these factors are pushing pump prices lower.
Despite the relief at the gas pump, many Americans remain skeptical about the broader economic picture. A YouGov poll for CBS News, which surveyed 2,489 adults, found that 33 percent said the economy was the most important issue on which to judge President Donald Trump. Of that group, 77 percent said they do not believe he is doing enough on the economy and inflation.
What Happens Next
Industry experts expect gas prices could edge even lower as refinery maintenance fully concludes and demand typically softens further in the winter months. While cheaper fuel provides immediate relief for consumers, analysts and policymakers will be watching closely to see how these lower prices intersect with ongoing inflation concerns and the broader economic outlook in the months ahead.
