Will gas prices drop below $3 this holiday season?
Millions will hit the road next weekend to reach their holiday destination... will gas fall under $3 a gallon in any state?
Gas prices have significantly decreased since reaching their peak in 2022. This holiday season, travelers will benefit from this deflation. One year ago, the average price for a gallon of gas in the US was $3.193, and today that figure stands at $3.08. In some states, the cost of a gallon is even less than $3. But will these prices hold through the holidays? It is nearly impossible to predict how prices will be affected by increased demand. However, in states like Texas, where gas prices are currently well below $3 per gallon ($2.55), it is unlikely that there will be significant increases that would cause prices to exceed that threshold.
Where is gas selling for under $3 a gallon?
In more than half of states, drivers are paying $3 per gallon or less:
- Texas: $2.55
- Mississippi: $2.63
- Oklahoma: $2.63
- Missouri: $2.66
- Louisiana: $2.68
- Arkansas: $2.69
- Ohio: $2.74
- Kansas: $2.74
- Alabama: $2.75
- Kentucky: $2.75
- Wisconsin: $2.75
- Colorado: $2.78
- South Carolina: $2.78
- Tennessee: $2.78
- Indiana: $2.79
- Iowa: $2.81
- New Mexico: $2.87
- Florida: $2.89
- Nebraska: $2.89
- Minnesota: $2.90
- North Carolina: $2.91
- North Dakota: $2.93
- Delaware: $2.97
- Utah: $2.97
- Georgia: $2.98
- Virginia: $2.98
- Wyoming: $2.98
- Michigan: $2.99
- Montana: $3.00
Source: AAA
It is unlikely that prices will surge above the three-dollar mark in states where the gallon is selling well below that price point over the next week. However, there is a possibility of such gains in states that are currently at or just below $3. To avoid paying a higher holiday premium on prices as people begin their travel closer to the end of the week and over Christmas Eve weekend, it is best to fill up the car as soon as possible.
Additionally, the US Energy Information Administration forecasts that gas prices will continue to fall in 2024. In the Short-Term Energy Outlook published earlier this week, the agency predicted that the annual average would fall to $3.36 next year from $3.53
Where are the prices highest?
On the other end of the spectrum, drivers in three states are paying over four dollars a gallon:
- Washington: $4.22
- California: $4.63
- Hawaii: $4.70
As the holidays inch closer, the holiday forecasts will become more clear.