According to data from GasBuddy, which tracks oil prices, the average gasoline price in the United States has dropped to the lowest level in nearly five years, averaging about $2.90 per gallon as of Monday, December 8th. However, gas prices in California continue to remain high, standing $1.50 above the national average.
GasBuddy analyst Patrick De Haan wrote in a post on Sunday, “The national average gas price has just dropped below $2.90 per gallon, the first time since May 2, 2021.” He added, “The current national average gas price is $2.897 per gallon (according to GasBuddy), the lowest it has been in 1,680 days.”
In a report released early on Monday, GasBuddy stated that the average price of regular unleaded gasoline had decreased by 5 cents compared to the previous week, 17.6 cents lower than last month, and 7.3 cents lower than a year ago.
GasBuddy noted that the most common gas price in the United States is $2.79 per gallon, a decrease of 20 cents from the previous week.
De Haan stated in a press release on Monday, “With the further decline in the national average gas price, prices have reached multi-year lows just before Christmas. Barring any major disruptions, prices may remain at lower levels until the new year.”
According to GasBuddy, diesel prices have also decreased by 5.1 cents over the past week, currently standing at $3.67 per gallon.
Based on data from the American Automobile Association (AAA), as of December 8th, the average price of regular gasoline was around $2.95 per gallon, down 5 cents from a week ago. AAA data shows that a year ago, the average price was around $3 per gallon.
According to AAA data, California currently has the highest average gas price in the country, averaging $4.46 per gallon, $1.51 higher than the national average. Hawaii follows with gasoline at $4.43 per gallon, and Washington state at $4.10 per gallon. Oklahoma has the lowest gas price at just $2.36 per gallon.
AAA data indicates that the highest average price for regular unleaded gasoline in the U.S. was seen in mid-June 2022, surpassing $5 per gallon.
Since taking office, President Trump has been trying to prove that his policies are benefiting the American people and improving their quality of life compared to the previous administration.
The White House cited GasBuddy’s report on Monday, stating that the record low oil prices are evidence of the U.S. economy’s impending recovery.
“This (oil price) is one of the new trends supported by strong economic data,” the authorities said in a post on their website, “In the past week alone, Americans have seen median rent nationwide drop for the fourth consecutive month, weekly unemployment claims hit a three-year low, mortgage rates near a one-year low, and consumer confidence levels rising significantly.”
Last week, Trump signed a measure to cancel the Corporate Average Fuel Economy (CAFE) standards for gas-powered vehicles, claiming that this move will lower costs for many individuals.
Government officials, including Treasury Secretary Scott Bessent, have stated that the current administration is addressing inflation-related issues left over from the previous administration.
Bessent said in an interview with CBS News on Sunday, “Inflation is a composite figure, and I believe that inflation will steadily decline over the coming months.”