The national average gas price in the United States is dropping and could fall below $3 a gallon soon.
Prices have dropped for the second week in a row to a national average of $3.07 per gallon.
With a median price of $2.99, this drop marked a decline of nearly five cents over the past week and a 13-cent drop from last month, Gas Buddy reported.
Diesel prices fell too, with the average now at $3.54 per gallon, the lowest in over three years.
Contributing factors include seasonal demand decreases and stabilization in global oil prices due to reduced Middle East tensions. The drop is on trend, reaffirming the World Bank’s expectations that the oil glut will cause a commodity price slump next year.
U.S. crude oil inventories increased by 5.5 million barrels, and refinery utilization rose to 89.5%, supporting price declines.
The most common gas price is $2.99, while the top earning 10 percent stations average $4.41 per gallon. However, history has shown that as holiday travel looms, prices will increase.
Southern states continue their annual trend of having the lowest average gas prices: Louisiana at $2.69, Mississippi at $2.65, and Texas at $2.60.
The states with the highest average prices remained California and Hawaii with average prices of $4.53 a gallon and Washington at $4.01.
Gas prices influence inflation as they impact the cost of goods and transportation.
President Joe Biden asked Congress to pause the nation’s gas tax in 2022 to help lower record pump prices but it was met with opposition.
California Governor Gavin Newson recently signed legislation aimed at preventing spikes in gas prices in that state.
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