The national average price of gasoline dropped below $3 a gallon over the weekend, sinking to their lowest level since 2021. The median U.S. gas price is now $2.83 per gallon, with the national average 6.9 cents cheaper from a month ago and 5.4 cents per gallon lower than a year ago. However, prices vary widely by state, with drivers in Oklahoma paying $2.409 per gallon compared to $4.560 in California.
According to GasBuddy, a handful of gas stations are offering gas under $2 per gallon. That said, diesel prices have seen an even steeper decline, with the national average price of diesel currently standing at $3.72 per gallon, 5.5 cents lower than a week ago.
“Nearly every state saw average gas prices fall heading into Thanksgiving, with the national average dipping below $3 per gallon for several consecutive days–falling to $2.95 per gallon over the weekend, the lowest level since May 2021,’’ said Patrick De Haan, head of petroleum analysis at GasBuddy.
Oil prices remain depressed, with Brent crude for February delivery trading at $63.07/bbl at 11.50 am ET in Monday’s morning session, up 1.07% on the day but nearly $2 lower from a month ago, while WTI crude was up 1.1% at $59.19 per barrel.
According to the latest EIA’s weekly stockpile report, U.S. oil inventories rose by 2.8 million barrels but are 4% below the seasonal average. Similarly, gasoline inventories were up by 2.5 million barrels but are 3% below the five-year seasonal average, while distillate inventories rose ticked up by 1.1 million barrels but remained 5% below the five-year seasonal average.
Unfortunately, U.S. energy prices are generally rising, with forecasts from the U.S. Energy Information Administration (EIA) and recent data indicating a continued upward trend for both electricity and natural gas prices through at least 2026. The national average for residential electricity prices rose 5.8% between August 2024 and August 2025, with some states seeing much higher increases. The trend is expected to continue with moderate increases in 2025 and 2026.
By Alex Kimani for Oilprice.com
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