Gas Prices Near $3 for First Time in Four Years

Prices Dip to Levels Not Seen Since 2021

Drivers across the U.S. are finally catching a break at the gas pump. According to AAA, the national average price for a gallon of gasoline fell to $3.05 last week, marking the lowest level in four years. The last time Americans paid around $3 per gallon was in May 2021.

Analysts point to a combination of falling crude oil prices, reduced gasoline demand, and the switch to cheaper winter-blend fuel as key factors. West Texas Intermediate (WTI) crude futures are now trading near $57 per barrel, their lowest in months.

Supply Surge Creates a “Glut”

Energy experts say the drop in gas prices is largely the result of swelling global supply. Andy Lipow, president of Lipow Oil Associates, explained that OPEC+ has gradually lifted its voluntary production cuts while domestic oil output in the U.S. has climbed to record highs of more than 13.6 million barrels per day. Additional supply from Brazil, Guyana, and Argentina has further eased prices worldwide.

“The result is a glut,” Lipow told FOX Business. “Gasoline prices are tracking crude oil prices lower.”

Economic Outlook: Cheaper Gas, Cautious Optimism

The Energy Information Administration (EIA) estimates that crude oil makes up 51% of the cost of a gallon of gasoline, meaning lower oil prices directly translate to savings for consumers. The EIA projects average prices will hover around $3.10 per gallon through year’s end and could dip to $2.90 in 2026—a hopeful sign for households and transportation sectors alike.

For now, Americans can look forward to more affordable commutes as markets stabilize and supply remains abundant.