Gasoline Prices Plunge: Half of U.S. States Below $3 per Gallon
This Thanksgiving, drivers in half of U.S. states are experiencing average gasoline prices below $3 per gallon, a trend that's expected to continue into Christmas. This significant drop is attributed to a combination of factors: lower crude oil prices, cheaper winter blends, weaker seasonal demand, and refineries completing autumn maintenance.
According to AAA, the national average price of regular gasoline on November 25 was $3.055 per gallon, a slight increase from last year's $3.056 per gallon. However, 28 states, primarily in the Midwest and the Gulf Coast, have already seen sustainable drops below $3 per gallon, with more states expected to follow.
This year, a record 81.8 million people are projected to travel at least 50 miles from home during the Thanksgiving holiday, with 73 million traveling by car, a 90% majority. This represents an additional 1.3 million people on the road compared to last year, and the number could rise further if air travelers opt for driving due to recent flight cancellations.
AAA noted that despite the surge in gasoline demand during Thanksgiving week, overall demand remains low this time of year, contributing to lower pump prices. The national average price has remained relatively stable in 2025 due to low crude oil prices and no major storms affecting Gulf Coast refineries.
The U.S. benchmark WTI Crude futures have fallen below $60 per barrel, a 17% year-to-date drop in oil prices. This sub-$60 crude price is both a test for U.S. shale patch production and a boon for American consumers. Prices at the pump are expected to drop further in the coming weeks due to low consumption, global oversupply, and peace talks to end the war in Ukraine.
Patrick De Haan, head of petroleum analysis at GasBuddy, highlighted Oklahoma's current lowest average gasoline price of $2.43 per gallon, the lowest since February 2021. Four stations in Midwest City, Oklahoma, offered regular unleaded gasoline at $1.99 per gallon, the lowest price in the U.S. since 2021, without discounts or promotions.
GasBuddy predicts that more locations in low-cost states like Texas and Mississippi will follow this trend before the typical spring rebound in 2026. Falling oil prices and healthy refinery output have relieved consumer pressure at the pump over the past months, according to the fuel savings app.
Tsvetana Paraskova, writing for Oilprice.com, emphasized the significance of these low gas prices, signaling what Americans could expect in the coming months. Lower seasonal demand, falling oil prices, and rising OPEC output are collectively driving prices down.
