Gas Prices Slip to Over 4 Year Low Amid Inflation Concerns

By Anna Skinner

Senior Reporter

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Gas prices dropped to their lowest point since May 9, 2021, on Friday morning, with nationwide averages below $3 per gallon, according to GasBuddy Head of Petroleum Analysis Patrick De Haan.

"WOAH! Cheaper gas! According to GasBuddy data, average U.S. gas prices have dropped to their lowest level in 1,664 days (May 9, 2021) at $2.961/gal this morning," De Haan posted on X.

De Haan told Newsweek he anticipates the prices will continue to fall over the next four weeks.

Why It Matters

As nearly 82 million Americans travel for the Thanksgiving holiday, the national average price of gasoline has reached its lowest level in more than four years, according to GasBuddy data. This drop in prices offers tangible financial relief for consumers but comes amid persistent inflation concerns and broader economic caution, painting a complex picture for household budgets and economic sentiment in late 2025.

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What To Know

On Friday morning, GasBuddy data showed the nationwide average for gas prices at $2.961 per gallon. AAA reported the nationwide average as $3.022 per gallon.

The most expensive gas was sold in California, with a statewide average of $4.567 per gallon. The cheapest was in Oklahoma, at $2.454 per gallon.

Twenty-eight states, including Oklahoma, New Hampshire, and Georgia, are reporting average gas prices below $3 per gallon. Notably, fuel in states like Texas and Oklahoma can be found near $2 per gallon in some locations, ABC News reported.

Hawaii averages $4.455 per gallon, according to AAA data.

The recent drop in gas prices is driven largely by a steep decline in global oil prices. The global benchmark Brent crude has fallen about 17 percent since June, ABC News reported. At the same time, refineries have completed seasonal maintenance and can produce more fuel. Paired with lower demand as summer travel wanes, these factors have all contributed to the decrease at the pump.

Despite these historically low gas prices, most Americans who say the economy is the most important issue to judge President Donald Trump on do not believe he is doing enough to address it.

A YouGov poll for CBS News surveyed 2,489 adults and found that 33 percent said the economy was the most important issue to judge Trump on. However, 77 percent of those who answered in that way believe he is not doing enough on the economy and inflation.

What People Are Saying

GasBuddy's Patrick De Haan said in a blog post on November 25: "Lower seasonal demand, falling oil prices, and rising OPEC output are all pushing prices down. While a few stations have recently dipped below $2 through temporary offers and promotions, this marks the first time we’ve seen a regular sub-$2 price. Prices at this level may fluctuate, but more locations in low-cost states like Texas, Mississippi, and others across the Gulf region are likely to follow before the typical spring rebound we’ll likely see in 2026.”

White House spokesman Kush Desai previously told Newsweek: “Putting Joe Biden’s economic disaster behind us has been the top priority for President Trump since Day One, and the administration continues to push economic policies that are cooling inflation and raising real wages. These same policies created a historic economy with robust job, wage, and investment growth in President Trump’s first term, and Americans can rest assured that President Trump is focused on ensuring that the best is yet to come in his second term.”

What Happens Next

Industry analysts predict that gas prices may continue to dip as refineries complete maintenance and fuel demand tapers further during the winter months. While low gas prices provide immediate relief for consumers, their impact on the broader economy, particularly as inflation concerns persist, will be closely watched by policymakers and industry participants in the months ahead.

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