The national average price for a gallon of regular gas has fallen below $3 for the first time since May 2021 – giving consumers a welcome break amid persistently high costs in other areas.
“The national average has reached spring 2021 levels due to the lower price of crude oil, slugging gas demand, and cheaper-to-produce winter blend gasoline,” AAA Spokesperson Aixa Diaz told The Independent in an email. “Overall, 2025 has seen few fluctuations in the national average compared to previous years. Barring any major geopolitical events, pump prices should remain low this holiday season.”
GasBuddy, another firm that tracks gas prices, noted that other factors may be dragging prices down, too.
“With refinery maintenance largely complete and OPEC increasing oil production for December, oil prices have struggled,” GasBuddy Petroleum Analyst Patrick de Haan said in a press release. “Combine those factors and you have a solid recipe for continued downward pressure on gas prices in the weeks ahead.”
While the drop in national average prices is good news, consumers in many states are still paying far above $3 a gallon.
Gas prices are lowest, generally speaking, along the Mississippi River right now. Several of those states are enjoying gas prices ranging from $2.411 per gallon to $2.654, according to AAA.
Here are the five states with the lowest average price for a gallon of regular gas:
- Oklahoma: $2.411
- Texas: $2.552
- Arkansas: $2.564
- Mississippi: $2.586
- Tennessee: $2.589
Costly California
While the Mississippi River cuts through the nation’s cheapest gas region, the Pacific Ocean washes up against the three states with the highest average gas costs in the country. AAA’s data reveals that prices out West range from $3.212 to $4.525.
Below are the five states with the highest average prices for a gallon of regular gasoline:
- California: $4.525
- Hawaii: $4.444
- Washington: $4.155
- Oregon: $3.772
- Nevada: $3.699
Pennsylvania ($3.208) is the exception to the westward bias to high prices – it’s the only state on the East Coast and New England with an average price above $3.20.
How sub-$3 gas prices impact national and individual spending
The latest data from the U.S. Energy Information Administration indicates that Americans use around 376 million gallons of gas per day. Using that consumption as a baseline, here’s how collective spending on gas compares today to one week, month, and year ago, according to AAA’s pricing information at the time of publishing.
The price dip to $2.999 has saved Americans a collective $16.2 million in gas costs daily compared to a week ago; $13.9 million compared to a month ago; and $14.3 million compared to a year ago.
On an individual level, the shift in average gas prices will have a mild effect on monthly spending. Today’s gas prices save drivers anywhere from 55 cents to $1.11 per month compared to prices a month ago, and 57 cents to $1.14 per month compared to one year ago.
The chart below shows monthly costs for individuals based on how much gas they use per month and gas prices for today, one month ago, and one year ago: