The average cost of gasoline nationwide is hovering near the $3 mark and could soon dip below it, some industry experts say.
The national average stood at around $3.07 per gallon as of Wednesday, down around 10 cents from a month ago and nearly 15 cents from a year ago, according to AAA.
“Americans appear to be on the cusp of seeing the national average drop below $3.00 per gallon and potentially stay there for the first time in years, as prices have fallen across the vast majority of the country,” said Patrick De Haan, head of petroleum analysis at Texas-based GasBuddy, which tracks prices at more than 150,000 stations nationwide.
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De Haan said that with more than 40 states seeing decreasing gas prices and with oil dipping below $60 a barrel, the downward trend could continue in the coming weeks.
“The good news may not end if — and when — the national average hits that magical $2.99 mark,” he said.
He added that with wages climbing and fuel prices falling, Americans are spending a smaller portion of their income on gas than they have in years.
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States with the lowest gas prices on Wednesday included Texas at $2.65, Wisconsin at $2.67, and Arkansas at $2.64, according to AAA.
Meanwhile, places with the highest gas prices Wednesday included California at $4.65, Hawaii at $4.48, Washington at $4.46 and Oregon at $4.07.
Two reasons behind the wallet relief include weaker demand following the summer travel season and the fact that refineries are switching to a less expensive winter fuel blend, NBC’s business correspondent Brian Cheung told TODAY on Wednesday.
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“The reason why is because refineries are switching to what they call the winter blend, which is a little bit cheaper to produce,” Cheung told TODAY. “And it’s just there are fewer drivers on the road because we’re past summer, unfortunately, and for that reason, demand is down, gas prices are also going up.”
The Energy Information Administration (EIA) recently projected that less than 2% of people’s personal disposable income will be spent on gasoline in 2025, down from an average 2.4% over the previous decade and the lowest share since 2005, excluding 2020.
FOX Business’ Daniella Genovese contributed to this report.
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