Gas prices have been plunging. This Thanksgiving may offer drivers the lowest prices since 2020. However, while many states enjoy a price for a gallon of regular well below $3, in California, the price is close to $5 most days.
How good is the trend for drivers? CNBC reported: “Prices have fallen for nine weeks now and are on the longest downward streak since the summer of 2022, said Patrick de Haan with GasBuddy.” If oil prices continue to decline, the drop will continue.
The carefully followed AAA Fuel Gauge shows the national average for a gallon of regular at $3.295. A month ago, that price was $3.554. A year ago, the price was $3.662. This is the cost of gas the year you were born.
The states with the lowest prices are mostly around the Gulf of Mexico, near the massive refineries south of Houston. Mississippi has the lowest price at $2.743, followed by Texas at $2.752, Oklahoma at $2.791. Alabama has the sixth lowest price at $2.853. These prices are evidence that the cost to move a large amount of gas long distances from refineries gets reflected in costs.
The most important factor in gas prices continues to be the price of oil. After reaching $120 a barrel in June 2022, the price fell most months until another increase this summer when it moved back toward $90. Since then, it has fallen to $78. Worries about geopolitical effects on supply have been overstated. Supply from producers, which includes the US, has been abundant. Demand in China, the world’s largest crude importer, has been modest because of a slow economy. With oil near summer lows, there are some possible stocks.
The other major reason gas prices vary from state to state is taxes. This is the main reason gas prices, based on a gallon of regular, have been so high in California. According to the API, the national average of gas taxes per gallon is $.5709. Southern states have lower taxes. In Mississippi, for example, the price is $.3719 a gallon. In California, the figure is $.8655.
The primary reason California has $5 gas is state taxes.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.