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Key Takeaways
- The national average price for a gallon of gas is $2.90, near its lowest level since spring 2021 after dipping to $2.78 last month.
- Gas has stayed below $3 per gallon for 11 straight weeks, the longest sustained stretch under that mark in more than four years.
- In the cheapest states, prices are in the mid-$2 range, while the highest statewide average reaches $4.52.
Gas Prices Are Hovering Near Their Lowest Level Since Spring 2021
The national average price of regular gasoline is near its lowest level since spring 2021, according to new data released Tuesday by the U.S. Energy Information Administration. The latest reading of $2.90 follows a dip to $2.78 four weeks ago—the cheapest level in more than four years—and prices have now remained in that range for weeks.
In fact, the national average has remained below $3 per gallon for 11 straight weeks, the first sustained stretch under that mark since May 2021. That stands in sharp contrast to summer 2022, when gas prices surged into the $4 range—and even topped $5 for a week.
The multiyear trend underscores how notable the current stretch is. After spiking in 2022, prices bobbed between $3 and $4 in 2023 and 2024. They then remained mostly stable in the lower $3 range through much of 2025 before dipping below $3 at the start of December.
Why This Matters
Lower gas prices can ease pressure on household budgets, especially for commuters and families planning road trips. But depending on where you live, you could still be paying significantly more—or less—than the national average.
Where Gas Is Cheapest—And Most Expensive—Right Now
While the U.S. Energy Information Administration reports national and regional gasoline prices, it does not publish state-by-state averages. For that breakdown, we turn to AAA’s daily state data.
According to AAA, several Southern and Midwestern states currently have the lowest average prices in the country. Oklahoma has the cheapest statewide average, followed by Arkansas, Kansas, and Mississippi, with prices clustered in the mid-$2 range.
At the other end of the spectrum, drivers in California, Hawaii, and Washington are paying more than $4 per gallon. Oregon, Nevada, and Alaska also rank among the most expensive states.
Why Gas Prices Vary So Widely by State
The differences can be striking. A driver in Oklahoma could pay $2 less per gallon than someone filling up in California. But that wide spread isn’t random—it reflects structural differences in how gasoline is taxed, produced, and delivered across the country.
According to the U.S. Energy Information Administration, fuel taxes are one of the biggest reasons gas prices vary across the country. In late 2025, taxes made up more than 17% of the average price per gallon, and because some states add far more in taxes and fees than others, that difference can show up dramatically at the pump.
Prices also vary based on proximity to refineries and pipelines, as well as whether a state requires special fuel blends that cost more to produce and transport. Take California, for example. Its gasoline prices are often higher—and more variable—because the state requires a unique cleaner-burning fuel blend that only relatively few refineries produce. California also has one of the highest gasoline taxes in the country.
