Most Common U.S. Gas Price Now $2.99 As Prices Keep Plunging - Forbes

Topline

The most common price for a gallon of regular gas at U.S. pumps fell to $2.99 Monday, according to data from GasBuddy, while the nation's average price fell to the lowest level since around the time Russia started its invasion of Ukraine.

Key Facts

Patrick De Haan, GasBuddy's head of petroleum analysis, tweeted Monday that $2.99 a gallon had overtaken $3.39 for the most common price at the roughly 150,000 gas stations the company tracks.

The most common price is a different metric from average price, which is around $3.51 a gallon—still the lowest recorded in the U.S. since February.

Prices are generally cheapest across the South and Midwest, led by Texas, which has a statewide average of $2.82 a gallon and has counties reporting average prices as low as $2.63 a gallon.

Average prices are also under $3 a gallon in Oklahoma ($2.92), Arkansas ($2.98), Mississippi ($2.99) and Louisiana ($2.999).

Contra

Prices remain highest in the West, topped by the $5.15 a gallon average in Hawaii. California is next with average prices of $4.95 a gallon, but that's significantly lower than prices there over the summer, which soared well above $6 a gallon.

Crucial Quote

"It’s entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump," De Haan said in a Monday analysis.

Key Background

A historic surge in gas prices during the spring and summer caused headaches for many Americans and became one of the most obvious signs of the nation's rampant inflation. The price spike was driven by numerous factors, such as the Russian invasion, a refusal by OPEC to significantly increase production and diminishing U.S. refining capacity, but prices in June started trending downward at a similarly historic pace. The primary reason for the drop has been a decrease in fuel demand while more gasoline has hit the market. According to GasBuddy, demand fell by 5% last week compared to the week before, though Americans pre-filling tanks before Thanksgiving celebrations contributed to the decline.

Further Reading

As U.S. Gas Prices Top $5, Here Are The States Where It’s Most Expensive And Cheapest (Forbes)

U.S. Gas Prices Drop Close To $4 A Gallon—Here Are The States Where It’s Already Cheaper (Forbes)

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