Gas Prices Drop Below $3 in Most U.S. States Ahead of Thanksgiving Week

Gas prices are dropping across much of the country just as Thanksgiving travel picks up. While the national average is still a little above $3 a gallon, more than half of U.S. states now have averages below that level. A few stations have gone even lower, offering regular gas for $1.99.

AAA reports that the national average for regular gas was $3.05 on Tuesday — almost the same price drivers paid at this time last year. Prices remain high on the West Coast, where states like California and Washington are still above $4 a gallon. But 28 states, mostly in the Midwest and Gulf Coast, are now below $3.

Several forces are behind the decline. Demand usually falls after summer, winter gasoline blends are cheaper to produce, and crude oil prices have been sliding going into the end of the year.

Patrick De Haan of GasBuddy said more relief is likely on the way. He expects the national average to slip under $3 within the next week, which could keep prices low through the rest of the year. GasBuddy recently found four stations in Midwest City, Oklahoma, charging $1.99, marking the first steady sub-$2 pricing seen since 2021.

Oil markets are reinforcing the trend. Brent and West Texas Intermediate crude both dropped more than 2% on Tuesday as talks continued over a possible peace plan involving Ukraine and Russia, one of the world’s major oil producers. Both benchmarks are now down more than 17% since the start of the year.

Tom Kloza, chief oil analyst at Gulf Oil, said late fall and early winter normally bring the most favorable cost conditions for gasoline, and the recent slide in crude prices is adding to that downward push.

Also Read: Oil Slips Below $59 After Ukraine Confirms Review of Draft Peace Plan