Low gas prices are nearing their lowest level in four years as tens of millions of Americans prepare to travel for Thanksgiving. Experts said that low gas prices may help reduce travel costs and ease holiday spending. Drivers across much of the country are benefiting from a rare decline in fuel costs ahead of the busy holiday season.
AAA reported that the national average for a gallon of gas on Monday reached $3.07. While this represents a slight increase from last year, it remains well below prices seen before 2020. Twenty-eight states now have average gas prices below $3, stretching from Colorado to New Hampshire and Georgia. Oklahoma offers the nation’s lowest price at $2.50 per gallon.
Nearly 82 million Americans are expected to travel at least 50 miles from home over Thanksgiving, AAA forecasted. Analysts said that lower prices may encourage more drivers to hit the road this year.
Patrick de Haan, head of petroleum analysis at GasBuddy, attributed the decline to falling crude oil prices. Brent crude has dropped about 17% since June, reaching $63.40 per barrel. De Haan also noted that the refinery maintenance season is ending, allowing fuel production to increase.
“With refineries reopening, we can process more oil and boost gasoline output,” de Haan said. He added that demand for gas has softened after a busy summer, which also puts downward pressure on prices. AAA noted that overall demand remains low this time of year despite the Thanksgiving surge.
Prices vary widely across the country. California drivers pay an average of $4.60 per gallon, the highest nationwide. Oregon and Alaska also have prices above $3.50 per gallon. Meanwhile, some stations in Texas and Oklahoma offer gas for nearly $2 per gallon.
De Haan said prices could fall further as more refineries complete maintenance and winter demand eases. “As we approach Christmas, low gas prices may continue, potentially falling below $3 per gallon,” he added.
Economists and analysts said these trends could benefit consumers during the holiday season, reducing transportation costs and helping households manage budgets. Low gas prices may also influence travel patterns and retail spending in the coming weeks.
For more business updates, visit DC Brief.
