Barring sudden changes, the national average price of gas looks like it could soon drop below $3 per gallon for the first time since May 2021. It’s an arbitrary threshold but it feels significant. 2021 prices? That’s practically pre-pandemic! As prices fall, drivers are regaining some buying power at the gas pump.
To show how much, let's say you have $20 to spend on fuel, and you’re paying the national average for regular gas (as of Oct. 28). Gas prices vary widely by state.
In fact, 20 states already pay less than $3 per gallon for regular gas, while it’s still above $4 per gallon in three states. Here’s what $20 will get you in the states where gas is priced highest and lowest: The table below shows how far $20 goes where you live. After two years of high inflation , your reaction to $3 gas (or your state’s equivalent) might be complicated.
Falling prices might bring relief to your budget. But you also might scoff at the hoopla over a price that’s still a far cry from what you’d consider “cheap gas.” Maybe $2 per gallon is more what you have in mind as the threshold for better gas prices.
That was the national average 20 years ago, and we got a recent taste of it when gas prices plummeted in the early days of the pandemic in 2020. (It was a short-lived shock driven by the sudden evaporation of fuel demand.) It’s true that if you were driving in 2004 and had the same 20 bucks to spend on gas, you could’ve bought four more gallons than you can now.
But.
