The average price for a gallon of gas has dropped below $3 just ahead of Christmas and the holiday sesaon.
That’s certainly good news for small business owners who, like all Americans, have been dealing with record-setting high gas prices at the pump for months.
And prices could go even lower still, says a spokesperson for AAA.
Andrew Gross says, “The cost of oil, gasoline’s main ingredient, has been hovering in the low-to-mid $70s per barrel, and that’s $50 less than the peak last Spring. Combined with low seasonal demand, gas prices could slide a bit more before leveling off.”
Nationwide, the average price for a gallon of gasoline is $3.11. That’s 56 cents lower than it was a month ago and 19 cents less than it was at this time in 2021.
23 States with Gas Below $3 at Christmas 2022
Here’s a look at the 23 states where gas prices are less than $3 a gallon.
- Texas – $2.61
- Oklahoma – $2.66
- Arkansas – $2.69
- Missouri – $2.69
- Tennessee – $2.73
- Mississippi – $2.73
- Georgia – $2.74
- Wisconsin – $2.75
- Louisiana – $2.75
- Kansas – $2.77
- Alabama – $2.80
- South Carolina – $2.81
- Kentucky – $2.81
- Colorado – $2.85
- Ohio – $2.86
- Iowa – $2.86
- North Carolina – $2.92
- Nebraska – $2.93
- Minnesota – $2.95
- New Mexico – $2.96
- Wyoming – $2.97
- Virginia – $2.98
- Indiana – $2.99
Gas prices are highest in Hawai’i ($5.10), California ($4.35), and Nevada ($4.01).
Diesel Gas Prices
The price of diesel fuel is also down considerably in the last month.
AAA reports the national average price for a gallon of diesel fuel is $4.73. It was $5.30 just a month ago. However, today’s cost for diesel is more than a dollar over the cost at this time in 2021, when a gallon of diesel cost $3.58.
Relief at the Gas Pump in 2022
This has been an unpredictable year for small business owners, especially those that need to purchase fuel to keep their business running.
Back in June, gas prices hit all-time record highs in the U.S. The highest recorded nationwide average for a gallon of gas was on June 14, when prices at the pump hit $5.02. And diesel prices hit their record high back on June 19. On that day, a gallon of diesel cost $5.82.
When you’re spending $5 for a dozen eggs, you have to cut back on the driving. And people drive less in winter, so some of this is simple supply/demand at work.
Sadly, gas prices are not determined by domestic factors alone. It is a tradeable international product. Let’s hope the world stays calm for gas prices to be moderate.
The Russian-Ukraine war is really messing up the energy markets. Hopefully, it ends soon and stability returns in the gas pricing regime
This fuel price hike is responsible for the inflation in all sectors. Just crazy to observe