Gas prices fall below $3 for first time in four years, GasBuddy reports
Gas prices dropping to lowest levels in years
As holiday spending ramps up and many Americans feel squeezed by higher prices on essentials, there is one area offering unexpected relief: gas prices. The national average has dipped below $3 a gallon for the first time in more than four years, analysts said Tuesday.
ST. LOUIS, Mo. - As holiday spending ramps up and many Americans feel squeezed by higher prices on essentials, there is one area offering unexpected relief: gas prices. The national average has dipped below $3 a gallon for the first time in more than four years, analysts said Tuesday.
What we know:
New data show the national average price for regular gas is about $2.99 a gallon, down from roughly $3.04 in recent weeks. GasBuddy’s daily estimate placed Tuesday’s average at about $3.01. Prices have fallen in all 50 states.
Patrick De Haan, head of petroleum analysis at GasBuddy, said the decline is tied to cheaper crude oil, increased refinery output and fewer drivers on the road during colder months. "Leading into 2026, there’s still some good news," he said. "We could see some of the cheapest gasoline prices on a yearly basis since the pandemic."
The price drop also comes as Americans brace for some of the most expensive parts of the year, including travel, heating bills, gifts and groceries. For many families, cheaper fuel may help offset at least some of the financial strain.
Drivers say they are noticing the difference at the pump. "I was like, wow, I haven’t seen something that cheap in a while," one shopper said. "It’s encouraging and it’s a good thing because that’s like one less essential that I got to worry about paying for."
Even small reductions can add up, she added: "Even 2 or 3 cents a gallon can, over the time of the year, make a difference."
What's next:
Analysts say the dip may continue, with prices potentially falling another 10 cents in the coming weeks. Many travelers are watching closely as they hit the roads for the holidays.