Gas prices near lowest level in 4 years ahead of Thanksgiving

(NEW YORK) — Gas prices stand close to their lowest level in four years as tens of millions of people prepare to travel over the Thanksgiving holiday.

The national average for a gallon of gas on Monday tallied at $3.07, which amounts to a slight uptick from a year ago, AAA data showed. But gas prices for each of the last two years have come in below Thanksgiving Day gas prices going back to 2020, when the pandemic slashed demand and cratered prices.

Twenty-eight states boast average gas prices below $3, spanning from Colorado to New Hampshire to Georgia, according to AAA. Oklahoma, the state with the nation’s lowest gas prices, offers drivers a gallon for an average price of $2.50.

Nearly 82 million people are expected to travel at least 50 miles from their home over Thanksgiving, according AAA’s forecast.

The decline in gas prices is owed in part to a steep drop in the cost of crude oil, the underlying commodity that refineries turn into gas, Patrick de Haan, the head of petroleum analysis at GasBuddy, told ABC News Live. The global benchmark price of Brent crude oil has fallen about 17% since June, clocking in at about $63.40 per barrel.’’

The oil price drop has coincided with the completion of maintenance season for refineries, meaning fuel output is set to grow as facilities reopen capacity previously closed for upkeep, de Haan added.

“With refinery maintenance now wrapping up, that’s going to mean that refineries are able to ramp up oil into their plants,” de Haan said.

Meanwhile, demand for gas has fallen as the busy summer traveling season has given way to an autumn slowdown, putting additional downward pressure on prices.

“Despite the burst of gasoline demand that will occur during Thanksgiving week, overall demand is low this time of year, which helps keep pump prices down,” AAA said in a blog post last week.

Still, prices vary significantly by state.

Drivers in California, the state with the nation’s highest gas prices, pay an average of $4.60 per gallon. Four other states, including Oregon and Alaska, feature average prices above $3.50 a gallon.

By contrast, some gas stations in Texas and Oklahoma tout gas prices as low as nearly $2 per gallon, de Haan said.

“Crossing state lines – that’s a danger zone for gas prices,” de Haan added.

Gas prices may drop even lower, according to de Haan. Gas supply is expected to increase as additional refineries complete maintenance, while demand often eases during the cold winter months.

Those trends could bode well for the next major holiday.

“As we get closer to Christmas, I think the news will continue to improve with gas prices potentially falling below $3 per gallon in the next few weeks,” de Haan said.

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