US gas prices fell below $3 on Tuesday for the first time since May 2021, according to AAA.
The national average price for regular gas dropped to $2.998 a gallon, down from $3.001 the previous day, according to the fuel price tracker.
It was also down from $3.036 a month ago and $3.05 this time last year.
Low prices at the pump come as Americans have been beaten down by sticky inflation and a weak labor market.
A survey from the Conference Board last week found consumer confidence plunged to 88.7 in November – down from 95.5 in October. That’s the lowest level since April.
Many voters in last month’s elections cited the cost-of-living crisis as their top concern as they elected Dems to office — socialist Mayor-elect Zohran Mamdani in New York City, along with gubernatorial winners Mikie Sherill in New Jersey and and Abigail Spanberger in Virginia.
Recent weeks have seen President Trump tout his affordability agenda as Americans shell out more on everything from a cup of joe to plush sofas and kids’ toys.
State gas price averages:
But on Tuesday, the average price of gas dipped below $2.75 a gallon in 18 states including New Mexico, South Carolina, Wisconsin, Iowa and Colorado, according to AAA.
Gas prices dropped alongside oil costs as the Organization of the Petroleum Exporting Countries, or OPEC, ramped up its production of oil – keeping supply higher than demand and sending a barrel of crude down to just $59 as of Tuesday.
Some Wall Street giants are betting prices will stay low.
JPMorgan Chase analysts recently predicted Brent crude oil, the international benchmark, will drop into the low $50-per-barrel range by the fourth quarter of next year and down into the $40 range by the end of 2026.
The “outlook worsens” in 2027 as a mounting supply surplus will sink Brent to just $42 a barrel and down to the $30 range by the end of the year, the analysts wrote.
It’s a sharp turnaround from early December 2022, when US oil prices were roughly $81 a barrel.
In June, just a few months after Russia invaded Ukraine, gas prices surged to their highest national recorded average price of $5.016 a gallon, according to AAA.
Trump campaigned on delivering lower gas prices to Americans during his second term with a “drill, baby, drill” mindset prioritizing deregulation.
He also called for OPEC to ramp up oil production during a speech shortly after he was elected.
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