Drivers in half of U.S. states are enjoying average gasoline prices below $3 per gallon this Thanksgiving holiday, and prices at the pump are set to further decline going into Christmas.
Lower crude oil prices, cheaper winter blends, weaker seasonal demand despite the bump in Thanksgiving travel, and refineries completing autumn maintenance have converged to push the national average down to $3.055 per gallon of regular gasoline on November 25, just as millions of Americans are hitting or preparing to hit the road.
The national average price of gasoline is basically the same as at this time last year, when it was $3.056 a gallon, per AAA data.
But as many as 28 states, and counting – mostly in the Midwest and the Gulf Coast – have already seen state average gas prices sustainably drop below $3 per gallon, with further declines to follow.
This year, a record number of people, 81.8 million, are expected to travel at least 50 miles from home over the Thanksgiving holiday period from Tuesday, November 25 to Monday, December 1, AAA said last week. Of these nearly 82 million people, AAA projects at least 73 million people will travel by car. That’s almost 90% of Thanksgiving travelers and an additional 1.3 million people on the road compared to Thanksgiving last year. That number could end up being higher if some air travelers decide to drive instead of flying following recent flight cancellations, AAA noted.
Related: India’s Nayara Energy Defies Sanctions With Record Russian Intake
“Despite the burst of gasoline demand that will occur during Thanksgiving week, overall demand is low this time of year, which helps keep pump prices down,” AAA said in a note ahead last week.
“The national average has seen few fluctuations in 2025 thanks to low crude oil prices and no major storms affecting Gulf Coast refineries.”
The price of oil has dropped by about 17% year to date, with the U.S. benchmark WTI Crude futures falling below $60 per barrel in recent weeks.
The sub-$60 crude price may be testing the resilience of the U.S. shale patch production, but it is good news for consumers in America. And prices at the pump are set to drop further in the coming weeks on low consumption and expected lower oil prices amid a global oversupply and peace talks to end the war in Ukraine.
Patrick De Haan, head of petroleum analysis at GasBuddy, said late on Tuesday that Oklahoma, the state with the current lowest average price of gasoline, had just fallen to its lowest level since the end of February 2021, at $2.43/gal.
“More states could soon join thanks to low oil prices & refinery maintenance wrapping,” De Haan added.
Four stations in Midwest City, in the Oklahoma City metropolitan area, stood at $1.99 per gallon for regular unleaded gasoline early Monday morning, November 24. These are the first sub-$2 per gallon gas prices available without discounts or as part of a temporary promotion, making them the lowest prices seen in the U.S. since 2021, GasBuddy said on Tuesday.
These prices at four Oklahoma stations “are likely the first sustainable/profitable $1.99 price we’ve seen this year. It won’t be the last!” De Haan said on Monday.
GasBuddy expects that more locations in low-cost states like Texas, Mississippi, and others across the Gulf region are likely to follow before the typical spring rebound in 2026.
Over the past several months, falling oil prices and healthy refinery output have combined to ease pressure on consumers at the pump, according to the fuel savings app.
“It’s pretty compelling to see gas prices this low, falling ahead of Thanksgiving, and it signals what more Americans could experience in the coming months,” De Haan said.
“Lower seasonal demand, falling oil prices, and rising OPEC output are all pushing prices down.”
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
