Gasoline prices across the country have spiked drastically in the past few months. National observatory data indicate that the national average has dropped to its lowest points since 2021. Patrick De Haan, GasBuddy’s head of petroleum analysis, hailed the good news. Only two weeks ago, the national average gasoline price fell under $1.98 a gallon – the lowest price we’ve witnessed in years. This announcement arrives amidst a period of high oil prices and uncertainty for U.S. drivers.
De Haan notes that these consumers will catch sight of price rebounds below $2 per gallon. These are the exceptions, not the rules, and often due to niche promotions or loyalty program redemptions. He noticed, for example, each transaction at $1.99 a gallon, representing redemptions of loyalty points. Even so, he pointed out that none of these numbers reflect what consumers broadly are experiencing.
Current National Gas Prices
The American Automobile Association (AAA) just announced that U.S. drivers are currently shelling out an average of $3.165 per gallon. This change is in line with broader market trends in the price of fuels. This average is down 12 cents from last month. It’s much lower, by 49.6 cents, than the same time last year. Despite the recent uptick in gas prices—approximately 2 cents over the past week—De Haan believes that prices could soon dip below $3 per gallon as refinery maintenance concludes and supply levels improve.
In addition to reducing emissions, de Haan tackled the confusion around gas prices. That’s because only refiners, wholesalers and big-time fuel buyers care about RBOB pricing, he laid out. This price acts mainly as a guidepost for gasoline futures. He remarked, “That price is not inclusive of anything. It excludes taxes, it excludes tariffs, transportation, the cost of doing business, credit card fees — I mean all of it.”
He made clear, too, that what consumers need are retail prices that can be reliably compared. The bottom line is the lowest prices we’ve seen are more like $2.20 per gallon. Promotions and loyalty programs can help consumers pay a lower price, but these cases are exceptions to the rule of today’s market pricing.
Regional Disparities in Gas Prices
In Texas and Tennessee, numerous specific stations have posted prices in the $2.20s. This speaks to the fact that regional disparities in pricing are starkly present across the country. President Donald Trump tweeted this week that gas prices are below $2 a gallon. This announcement has been particularly criticized given the currently fluctuating nature of fuel prices.
“Gasoline just broke $1.98 a Gallon, lowest in years” – Donald Trump
Trump thinks consumers have been sitting on their hands for years with a pent-up demand for lower prices. In light of this, he has urged the Federal Reserve to lower interest rates. He stated, “Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!”
Taylor Rogers, a spokesperson for Trump, offered much the same sentiments on the effect of smart economic policies like reducing consumer prices. She claimed that “While some of the damage done by Bidenomics is still lingering, President Trump’s economic agenda is lowering prices for American families at lightning speed.”
As gas prices constantly change in line with free market principles and the geopolitical situation around the world, consumers are just looking for prices to stay low. According to AAA’s Daily Fuel Gauge Report, the national gas price average is $3.12 per gallon. This number is based on the overwhelming 12 million plus price reporting from over 150,000 gas stations.
What The Author Thinks
The fluctuating gas prices in the U.S. reflect a volatile market affected by several factors, including global tensions and local demand. While temporary dips may provide relief, consumers will need long-term solutions to address these rising prices, especially in light of the geopolitical instability impacting oil markets.
Featured image credit: Vitya_maly via GoodFon
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