US Gas Prices Drop Below $3 for the First Time Since 2024—And Could Fall Even Lower

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US Gas Prices Drop Below $3 for the First Time
Engin Akyurt/Pexels

For the first time in nearly a year, the average price of gas in the United States has dropped below $3 per gallon.

This change comes as oil supplies rise and demand slows across the country.

According to GasBuddy, the national average price for a gallon of regular gas fell to $2.99 on Sunday, dipping even further to $2.97 by Monday morning. This marks the lowest daily average since May 2021.

The price drop is being driven mostly by OPEC's decision to boost oil production, a shift from last year's strategy of cutting supply to raise prices. Lower global demand and less summer driving have also played a role.

"2025 brings the strongest potential for extended sub-$3 prices since 2021," said Patrick De Haan, head of petroleum analysis at GasBuddy.

He added that easing inflation and weaker demand have "created the perfect environment for lower prices."

According to Forbes, AAA reported an average of $3.04 per gallon on Monday, slightly higher than GasBuddy's number, but still down 14 cents compared to last year.

Looking ahead, prices may fall even more. GasBuddy predicts that by the end of 2025, national averages could dip into the $2.80 range, helped by the seasonal switch to winter blend gasoline, which is cheaper to make and can lower prices by 10 to 30 cents per gallon.

California Tops US Gas Prices at $4.64

However, not every region is seeing the same relief. In Columbus, Ohio, gas prices rose 24 cents over the past week, averaging $3.01 per gallon, Yahoo reported.

Despite the increase, this is still lower than a month ago, and 3.6 cents cheaper than a year ago.

The cheapest station in Columbus was selling gas for $2.25 per gallon, showing how widely prices can vary within a city.

Across the US, 35 states now have average prices below $3, with Oklahoma offering the cheapest gas at $2.51 per gallon.

California, meanwhile, remains the most expensive, with prices averaging $4.64 per gallon, according to AAA.

"Gas prices have finally fallen below $3 nationally—the earliest date we've seen this since 2020," De Haan said. "Barring any major issues like refinery fires or storms, prices should stay low through the fall."

While some may credit politics for the drop, experts like De Haan point out that global supply and demand are the real reasons drivers are paying less at the pump.

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