(NewsNation) — Gas prices have dropped below $3 a gallon to their lowest level in more than four years.
The national average for regular fell to $2.95 on Friday, the cheapest price at the pump since May 2021, according to GasBuddy.
A combination of lower oil costs, strong refinery output and softer demand has pushed prices down across all 50 states over the past seven days — a trend the fuel price-tracking company called “exceptionally rare.”
“This is a welcome break for Americans ahead of the holiday season and comes as refinery maintenance season concludes and gasoline demand weakens seasonally,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a release.
In Colorado, Oklahoma and Texas, several dozen stations are selling gas for under $2 per gallon. Meanwhile, California has the highest average at $4.50, but several counties saw prices slip below $4 on Friday.
The recent drop has been driven in part by easing crude oil costs, supported by additional supply from OPEC+ and record U.S. oil production. Refineries have also returned to strong utilization rates, boosting gasoline inventories at a time when consumption naturally tapers, GasBuddy said.
The relief comes as more than 70 million Americans hit the road for Thanksgiving, undercutting the idea that holiday travel pushes gas prices higher.
“Can we end the myth now that gas prices go up due to the holidays?” De Haan wrote on X.
GasBuddy said the sub-$3 national average could be the norm over the next four weeks and may even continue into the winter.
De Haan added: “As we get closer to 2026, the outlook for another friendly year for motorists is strengthening.”
States with the lowest average gas prices as of Friday morning, according to GasBuddy:
- Oklahoma: $2.37/gallon
- Colorado: $2.49/gallon
- Louisiana: $2.52/gallon
- Mississippi: $2.53/gallon
- Texas: $2.55/gallon
States with the highest average gas prices as of Friday morning, according to GasBuddy:
- California: $4.50/gallon
- Washington: $4.08/gallon
- Oregon: $3.72/gallon
- Nevada: $3.64/gallon
- Arizona: $3.29/gallon