❓WHAT HAPPENED: Gas prices have dropped to their lowest levels in over four years, averaging $2.95 per gallon, according to GasBuddy.
👤WHO WAS INVOLVED: GasBuddy, AAA, and the U.S. Energy Information Administration.
📍WHEN & WHERE: Data as of December 1, 2025, with declines reported nationwide, including in Ohio, Michigan, Oklahoma, and Texas.
💬KEY QUOTE: “This is an exceptionally rare and broad-based retreat,” said GasBuddy, citing lower crude oil prices and strong refinery output.
🎯IMPACT: Drivers are seeing significant savings, with gas prices dropping across all 50 states and some areas reporting prices as low as $1.99 per gallon.
U.S. gas prices paid by American drivers have fallen to their lowest levels since May 2021, according to data from GasBuddy. The average cost of gasoline is now $2.95 per gallon, reflecting an 8.5-cent drop over the past week and a 5.4-cent decrease compared to last year.
AAA reports a slightly higher national average of $3 per gallon as of December 1, representing a seven-cent decline from the previous week. GasBuddy noted that prices have decreased in all 50 states, attributing the drop to strong refinery output, lower crude oil prices, and softer seasonal demand. “This is an exceptionally rare and broad-based retreat,” they stated.
States including Ohio, Michigan, New Mexico, Oklahoma, and Texas recorded the most significant weekly declines, where prices fell by at least 11 cents. In Michigan, for example, drivers are now paying an average of $2.96 per gallon, five cents less than last month. In some states, including Oklahoma, Colorado, and Texas, prices have dropped to $1.99 per gallon or lower.
Diesel prices remain higher than gasoline, averaging $3.72 per gallon, but also saw a decrease of 5.5 cents over the past week. GasBuddy’s findings are based on over 12 million price reports from more than 150,000 gas stations across the United States.
The U.S. Energy Information Administration reported that domestic crude oil production remains strong, nearing an all-time high of nearly 14,000 barrels per day as of September.
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