Downward pressure on oil prices and seasonally low demand cause decline, not election results
(December 2, DALLAS) – The national average price of gas in the U.S. today fell below $3 per gallon for the first time since May 10, 2021, according to GasBuddy, the leading fuel savings platform saving North American drivers the most money on gas. As of 12:30 p.m. ET, the national average stood at $2.999 per gallon. Seasonal trends could potentially bring even lower prices this holiday season before gas prices start their annual climb next spring. However, a shift in economic policies under the incoming Trump administration could impact the typical seasonal lift.
Americans have not seen such low gasoline prices since 2021, when Covid-19-related shutdowns choked gasoline demand both in the U.S. and globally, leading to much weaker demand and lower oil prices. In 2022, the situation went from ice cold to red hot, when faster economic growth and sharply higher demand for gasoline, exacerbated by Russia’s war on Ukraine, sent oil prices skyrocketing. Limited U.S. refining capacity was also a prime cause for a lack of below $3 per gallon gasoline, as refining capacity was decreased both in the United States and abroad due to the pandemic. With the Federal Reserve now attacking inflation by raising interest rates, growth has cooled, allowing gasoline prices to return to a level not witnessed in years.
By the numbers:
- Current national average: $2.99/gal, 24 cents lower than a year ago
- Current average diesel price: $3.51/gal, 68 cents lower than a year ago
- Days since last $2.99 national average: 1,302
- Median U.S. gas price: $2.93/gal
- Median U.S. diesel price: $3.43/gal
“We’ve seen a few runs at $2.99 per gallon, but finally, after trying to break the barrier in late 2022 and 2023, we finally did it in 2024. This is a sign that gasoline prices are slowly continuing to normalize after the massive shockwaves brought on by Covid,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “We’re likely to enjoy these prices on and off over the holidays, and our early projection for 2025 is that we could see the national average stick around the $3 per gallon level through winter and then again perhaps in late 2025. I’m optimistic that the good news at the pump will continue into 2025, though we have yet to fully see how a shift in administration could impact prices.”
About GasBuddy
GasBuddy is the leading fuel savings platform providing North American drivers with the most ways to save money on gas. GasBuddy has delivered more than $3.5 billion in cumulative savings to its users through providing real-time gas price information at 150,000+ stations, offering cash back rewards on purchases with brand partners, and through the Pay with GasBuddy™ payments card that offers cents-off per gallon at virtually all gas stations across the US. As one of the most highly rated apps in the history of the App Store, GasBuddy has been downloaded over 100 million times. Acquired by PDI Technologies in 2021, GasBuddy’s publishing and software businesses enable the world’s leading fuel, convenience, QSR and CPG companies to shorten the distance between the fueling public and their brands. For more information, visit www.gasbuddy.com.