Gas prices are dropping, particularly in these 9 states
Stubbornly high gas prices that have been crimping household budgets for months are starting to tumble. In some states like Texas, prices have fallen below $3 a gallon.
The national gas price average hit $3.33 a gallon on Monday, down more than 4 cents from a week ago, according to GasBuddy. AAA pegged the national average at $3.36 a gallon as of Monday, down a nickel from a week ago. Diesel fuel prices are also falling, hitting an average $4.38 a gallon this week, down nearly 8 cents from the previous week, GasBuddy said.
"Some nine out of 10 states saw declines over the last week, so the drops are showing up for most across the country, with the exception of the West Coast as the transition to summer blends continues, and in the Great Lakes, where prices cycled last week but have now resumed declining," Patrick De Haan, head of petroleum analysis at GasBuddy, said in a fuel price report.
Prices are dropping because the cost of crude oil per barrel has been tumbling — and that's starting to show at the gas pump, De Haan and other energy experts said. The price of crude oil hit below $80 per barrel on Monday, down $3 from a week ago, GasBuddy reported.
The drop in per barrel prices is noteworthy because the "higher or lower oil costs will play a major role in the price we pay when fueling up," AAA spokesperson Andrew Gross said Friday.
Nine states now have gas prices below $3 a gallon, according to GasBuddy.
- Texas ($2.87)
- Mississippi ($2.92)
- Oklahoma ($2.93)
- Louisiana ($2.96)
- Arkansas ($2.97)
- South Carolina ($2.97)
- Kentucky ($2.98)
- Tennessee ($2.98)
- Alabama ($2.99)
The nation's highest gas prices are in:
- Hawaii ($4.83)
- California ($4.72)
- Nevada ($4.20)
- Washington ($4.14)
- Colorado ($4.03)
Filling up the tank became a major pain point for Americans last year, with prices reaching an average $5.01 a gallon in June. Higher prices impacted some Americans' ability to travel for major holidays last year like Memorial Day. Fuel costs continued to fluctuate as the Russian-Ukraine war intensified and the U.S. restricted purchases of Russian energy products.
Elevated gas prices also helped oil companies — Chevron, ConocoPhillips, Exxon and Shell — post record profits last year, drawing criticism from the White House and environmentalists. The four companies saw $1 trillion in sales last year.
Gas prices have fallen slightly or remained flat for most of 2023, hovering around $3.50 a gallon. Inflation statistics — and how the Federal Reserve responds to them — will play a major role in how gas prices look this spring, De Haan said.
"For the weeks ahead, tradition tells us to expect prices to move up eventually, but that could be at least partially offset by inflationary data that continues to be hotter than expected, leading to anxiety that the Fed will boost interest rates and cooling the economy and oil demand considerably," he said.