Looking for a bright spot in this puzzling economy where unemployment is low, but jobs seems scarce while housing inventory is low but prices are sky high, and groceries are breaking the bank? Here it is: Motorists are paying an average of $41 for a full 15-gallon tank of gasoline; a discount of about $16 from 2024's highest price last July.
Gas prices are the lowest they've been since 2021, and here's why: According to new data from the Energy Information Administration, gasoline demand decreased from 8.91 million to 8.45 million, while supply increased. Total domestic gasoline supply decreased from 219.1 million barrels to 218.8 million. Gasoline production decreased last week, averaging 9.4 million barrels per day.
Crude oil inventories increased by 3.5 million barrels from the previous week. The more supply, the lower the price. Also in play is the fact that President Donald Trump threatened China with new tariffs, which helped to bring down prices, according to experts. "For Trump, cheaper gas at the pump would mean he has kept his promise to lower the cost of living for everyday Americans," Newsweek reported.
And it could get even better for drivers.
“Average U.S. gas prices have dipped to $2.977/gal, tying the lowest level since December 8, 2024. Ultimately, we could see prices falling to their lowest since 2021 as OPEC continues to raise oil production, which is the bulk of why prices today are 17c/gal lower than a year ago,” Patrick De Haan, the head of petroleum analysis at GasBuddy, wrote on X.
Gas prices, however, are always a patchwork across the country, with Californians usually pay substantially more than drivers in the Midwest and South. This time, California is paying $4.64 a gallon on average while Florida pays $2.89, Illinois, $3.11, Louisiana, $2.63, and Michigan, $2.79.
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