Gas Prices Drop To Levels America Hasn’t Seen Since 2021

Good news for anyone who starts sweating when the low fuel light comes on, or when they realize their wallet is equally empty at full-up time. Gas prices in the US have finally dipped below $2 a gallon, a price some drivers thought we’d never see again.

AAA says the national average for a gallon of regular now sits at $2.998, the lowest it’s been since the spring of 2021.

Related: Trump Admin Pushes Fuel Economy Shakeup And The Impact Could Be Huge

If you have been filling up since the days of $5 panic pricing after the Ukraine invasion, this moment probably feels like discovering a forgotten 20 in last winter’s coat.

A lucky eighteen states are even enjoying numbers under $2.75. Some, like Oklahoma, have found themselves in the bargain bin at less than $2.50. Other regions are not so fortunate.

Drivers in California are still paying more than $4.50, and the rest of the West Coast is not far behind. If you want cheap gas, you might need to move inland until further notice.

Falling Crude, Flat Demand

So why the sudden drop? The credit goes mostly to crude oil, which has been losing value faster than a used luxury sedan. A barrel of US crude now sits around $59, well below the $70 level seen this time last year and miles away from the $80+ spike of 2022.

OPEC has turned the taps back on, US production keeps nudging higher, and demand has been flatter than a parking lot. With supply outpacing appetite, pump prices were never going to stay stubborn for long.

President Trump has been taking a victory lap on energy prices, reminding voters that cheaper gas is one of his signature promises. To be fair, prices are indeed lower than they were a year ago, but they are still roughly a buck above the $2 target he keeps insisting is just around the next corner, Bloomberg notes.

That level last appeared in 2020 when Americans were locked at home during COVID and gas stations had tumbleweed blowing past their pumps.

Source: AAA