On Memorial Day of 2022, the average price for a gallon of regular gasoline nationwide was $4.60. This year, it will be a few cents above $3 and much lower than that in many parts of the country. Welcome to Memorial Day, when crude oil prices cratered.
Oil prices were so low in the spring of 2022 because the start of the Ukraine war had pushed crude prices from $76 a barrel at the start of the year to $110 in March. Russia was one of the largest oil producers in the world. There was a belief that sanctions would take much of that crude out of the global market.
Crude is plentiful today. At the start of 2025, the price per barrel was over $80, and early this month, it was $57. Supply from the United States is plentiful, particularly because of shale production. Overall, U.S. output is near record levels. OPEC+ has also increased production, led by Saudi Arabia. China’s economy is weak, and it is the largest importer of crude oil.
Gasoline prices could fall more during mid-summer. “This is a win for consumers. And if the stars align later this summer, we could even see the national average drop below $3 a gallon,” said Patrick DeHaan, GasBuddy’s head of petroleum analysis.
AAA recently released its Memorial Day travel forecast. A total of 45.1 million Americans will travel, 39.4 million of them by car. The organization stated, “This year, drivers have the benefit of cheaper gas prices.”
Eight states have an average price for a gallon or regular below $2.80. Most are near the large refineries southwest of Houston on the Gulf of Mexico:
- Alabama ($2.73)
- Arkansas ($2.79)
- Louisiana ($2.70)
- Mississippi ($2.65)
- Oklahoma ($2.75)
- South Carolina ($2.76)
- Tennessee ($2.72)
- Texas ($2.79)
Many economists view low gas prices as an advantage for consumers as they free up discretionary income. If so, many Americans will have a very good summer.
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