Gas Prices Drop Below $3 Nationwide Ahead of Holiday Travel

Just in time for holiday travel, drivers across much of the United States are seeing a welcome surprise at the gas pump. According to AAA, the national average for a gallon of regular gasoline has now dropped below $3 — the lowest prices seen since 2021.

AAA spokesperson Aixa Diaz says a combination of high supply, lower demand, and cheaper-to-produce winter blend gasoline has pushed prices down heading into December.

Crude oil, the biggest factor in gas pricing, has also seen a significant drop. In late 2022, U.S. oil prices hovered around $81 per barrel following the global market disruption from Russia’s invasion of Ukraine. Today, prices are closer to the $60 range, helping to keep fuel costs low throughout most of the year.

Oil production from both the U.S. and OPEC nations has increased as well, adding more supply than the current seasonal demand requires. With winter travel periods being the only expected demand spikes, analysts forecast low prices to continue into the new year barring any major refinery issues or global market changes.

AAA says the affordability should offer relief to families hitting the road for holiday trips as they look for ways to cut expenses during the busy season.

Credit: CNN Newsource

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