Gas prices could hit their lowest levels since the pandemic, according to GasBuddy. The national average price of gasoline has fallen 6.4 cents over the last week, reaching $3.02 per gallon, as reported by GasBuddy. This marks a significant decrease of 13.7 cents from a month ago and 14.4 cents from the previous year. The national average diesel price has also decreased by 3.5 cents in the last week, settling at $3.628 per gallon.
Patrick De Haan, head of petroleum analysis at GasBuddy, notes that Americans are on the brink of witnessing the national average drop below $3 per gallon for the first time in years. This is due to the widespread decline in gas prices across the country, with over 40 states experiencing lower prices. The recent plunge in oil prices, falling below $60 per barrel, further contributes to this positive trend. De Haan predicts that some stations in states like Oklahoma, Texas, and Wisconsin might even offer gas below $2 per gallon in the coming weeks, a scenario unseen since the pandemic.
The oil market dynamics are also playing a crucial role. Oil prices dropped below $60 late last week after President Trump's threat of new tariffs on China, which could potentially lead to a trade war. Additionally, OPEC+'s increased production may result in a surplus of oil in a market that is already facing reduced demand due to trade tensions. However, markets rebounded early on Monday after China clarified its stance on rare earth exports.
The EIA's Weekly Petroleum Status Report for the week ending October 3, 2025, revealed that U.S. oil inventories rose by 3.7 million barrels, remaining 4% below the seasonal average. Gasoline inventories decreased by 1.6 million barrels, while distillate inventories fell by 2.0 million barrels, both below their respective five-year seasonal averages. Refinery utilization increased to 92.4%, and implied gasoline demand rose to 8.919 million barrels per day.
The most common U.S. gas price encountered by motorists is $2.79 per gallon, down 20 cents from the previous week. The median U.S. gas price is $2.85 per gallon, a 9-cent decrease from the previous week. The top 10% of stations in the country average $4.46 per gallon, while the bottom 10% average $2.45 per gallon. The states with the lowest average prices are Oklahoma, Mississippi, and Texas, while California, Hawaii, and Washington have the highest average prices.
The biggest weekly changes in gas prices were observed in Ohio, Michigan, Indiana, Washington, and Texas. For diesel prices, the most common U.S. price is $3.69 per gallon, up 10 cents from the previous week. The median U.S. diesel price is $3.53 per gallon, down 2 cents from the previous week. The states with the lowest average diesel prices are Texas, Oklahoma, and Mississippi, while Hawaii, California, and Washington have the highest average prices.
The biggest weekly changes in diesel prices were recorded in Texas, Florida, Michigan, Tennessee, and New Mexico.
