The U.S. gas prices have fallen below $3 a gallon for the first time since May 2021, offering rare relief amid years of high living costs. AAA data shows the national average dropped to $2.998 on Tuesday, down six cents in a week and slightly below the $3.05 average from a year ago.
Prices are even lower across 18 states — including New Mexico, South Carolina, Wisconsin, Iowa and Colorado — where averages sit under $2.75.
BREAKING: For the first time since 2021, the average price of gas in the US is down to $3.00/gallon.
— The Kobeissi Letter (@KobeissiLetter) December 1, 2025
President Trump continues to state that he wants gas prices back below $2.00/gallon. pic.twitter.com/xxxT0ZYNvT
The decline marks a dramatic shift from 2022, when Russia’s invasion of Ukraine pushed gas above $5 a gallon, triggering emergency oil releases under the Biden administration.
The drop now comes as the Trump administration faces continued scrutiny over inflation and energy policy.
Lower fuel prices could ease pressure on consumers heading into the holiday season, even as broader affordability challenges persist.
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TIPP Staff
