Gas prices fall below $3 per gallon in more than half of US states to kick off Thanksgiving holiday

CL=F -1.73% RB=F -1.47% BZ=F -1.59%

Gasoline prices are easing as the Thanksgiving travel weekend kicks off.

While the national average remains slightly above $3 per gallon, the average price per gallon in more than half of US states now falls below that mark, and a handful of stations are even offering regular unleaded for $1.99.

The national price of gasoline sat at $3.05 per gallon on Tuesday, about the same as exactly one year ago, according to AAA data.

Coastal states like California and Washington still carry prices above $4 per gallon, but more than 28 states — mostly the Midwest and Gulf Coast areas — are seeing prices average less than $3 per gallon.

Lower seasonal demand, less expensive winter blends, and falling oil prices are all expected to continue to put downward pressure on the cost of gasoline.

"I think it may take another week for us to get there, but when it does, we may [see] most of the rest of the year at or below that $3 per gallon mark with some of the lowest prices ... in the last four years," Patrick De Haan, head of petroleum analysis at GasBuddy, told Yahoo Finance.

GasBuddy data recently spotted four stations in Midwest City, Oklahoma, where prices stood at $1.99 per gallon.

"It's the first time that we've seen what I'll call sustainable sub-$2 prices since 2021," De Haan said. "That's a sign of what we could see more of. As we get closer to Christmas, I do expect the national average to continue falling in the weeks ahead."

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Crude oil prices have been on a downward trend heading into the end of the year.

On Tuesday, futures for Brent (BZ=F), the global oil benchmark, and West Texas Intermediate (CL=F) extended declines by more than 2% amid negotiations over a potential peace plan between Ukraine and Russia, a major oil producer.

"The next 40-80 days probably represent the most inhospitable climate for US gasoline prices of the season, and the ongoing peace initiative for Ukraine/Russia is leading to some liquidation in crude," Tom Kloza, chief oil analyst at Gulf Oil, told Yahoo Finance.

Brent and WTI are both down more than 17% since the start of the year.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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