For the first time in more than four years, the average price for a gallon of gasoline in the United States dropped below $3 on Tuesday, according to AAA.
The average gallon of regular gas in the U.S. fell to $2.998, marking the lowest price since May 2021. Gas prices plunged in 2020 due to the COVID-19 pandemic, as fewer Americans traveled.
As the U.S. recovered from the pandemic, gas prices climbed to record levels, reaching $5 a gallon in 2022.
Prices are now about 4 cents lower than a month ago and 5 cents lower than a year ago.
The highest average prices are currently on the West Coast. California drivers are paying about $4.54 per gallon, while the lowest prices are in the South. Oklahoma has the cheapest average price at $2.40 per gallon.
GasBuddy also reported that, in the past week, national averages dipped below $3 for the first time since May 2021.
Whether prices stay low remains uncertain. However, record U.S. production of crude oil has helped keep inventories high, suggesting they may stay down for the foreseeable future.
"We could see the national average spend more of the next four weeks below the $3-per-gallon mark than above it—a trend that may continue into the winter before prices begin their typical climb in mid-February," said Patrick De Haan, head of petroleum analysis at GasBuddy. "As we get closer to 2026, the outlook for another friendly year for motorists is strengthening."
