GasBuddy confirms national average hits lowest level in months as first $1.99 price surfaces
(October 20, DALLAS) – The national average price of gasoline in the U.S. fell below $3 per gallon on Sunday for the first time since December 29, 2024, according to GasBuddy, North America’s trusted fuel savings platform for more than 25 years. As of 9:30 a.m. ET, the intra-day national average stood at $2.969 per gallon — on track to potentially be the lowest daily average since May 2021. However, prices may not hold at that level for long, with increases expected in the Great Lakes following last week’s refinery fire which boosted wholesale gasoline prices in the region.
Seasonal factors could push prices even lower in the coming weeks. GasBuddy forecasts the national average could dip into the $2.80s by year’s end as gasoline demand eases, and oil prices remain near multi-year lows.
The recent decline stems largely from OPEC’s decision earlier this year to increase oil production —marking a shift from its 2023 strategy of cutting output to prop up prices. Since March 2025, OPEC+ has steadily raised production, fueling expectations of a potential crude glut. Some investment banks now warn oil could fall into the $40-per-barrel range as early as 2026. Combined with falling seasonal demand and the switch to cheaper winter gasoline, pump prices have dropped sharply, including a $1.99 per gallon cash price reported to GasBuddy at a station in Evans, Colorado.
By the numbers:
- Current national average: $2.97/gal, 16 cents lower than a year ago
- Days since last $2.99 national average: 295
- Median U.S. gas price: $2.82/gal
- Most common U.S. gas price: $2.89/gal
“We saw a few $2.99 days last year, but this year brings the strongest potential for extended sub-$3 prices since 2021,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “This drop is overwhelmingly being driven by the significant increase in oil production from OPEC throughout 2025, which has meaningfully rebalanced the global oil market. That, combined with weaker demand and inflation finally easing, has created the perfect environment for lower prices. While some may be quick to assign political credit, the reality is that global supply dynamics — particularly OPEC’s production decisions — have been the primary force behind the relief drivers are seeing at the pump.”
About GasBuddy
GasBuddy, North America’s trusted fuel savings platform for more than 25 years, empowers consumers to fuel up for less. With over 100 million app downloads, GasBuddy is reimagining everyday mobility with real-time gas prices at 150,000+ stations, tangible rewards at and beyond the pump, and the Pay with GasBuddy+™ program. Owned and operated by PDI Technologies, GasBuddy connects top brands with millions of digitally engaged consumers—wherever the road takes them—by unlocking data and insights into purchase patterns through a frictionless experience. To learn more about GasBuddy, visit gasbuddy.com.