MARY LOUISE KELLY, HOST:
Tens of millions of people who took road trips over the holiday weekend had an extra reason to be thankful - the lowest gas prices in more than four years. AAA says the average price of regular gas nationwide has dropped to just $3 a gallon. NPR's Scott Horsley has the lowdown.
SCOTT HORSLEY, BYLINE: Gas prices vary widely from state to state, and many parts of the country have seen pump prices starting with a two for months now. Still, when the average price nationwide drops to $3 a gallon, that's a milestone, especially at a time when many Americans are anxious about the overall cost of living. AAA spokeswoman Aixa Diaz says it's the first time the national average has dropped this low since the spring of 2021.
AIXA DIAZ: The biggest factor in 2025 has been the lower price of crude oil. There has been a lot of crude oil in the market. OPEC+ has been pumping oil into the market. Now you're talking about a time of year when gas demand goes down, and that's keeping prices down.
HORSLEY: Not everyone is seeing the same savings. Gas in California still costs 4.56 a gallon on average, and the closing of an oil refinery in Los Angeles last month is not likely to help. Meanwhile, gas in Oklahoma costs just over half as much - 2.41 a gallon. Falling fuel prices have not trickled down to the diesel pump. On average, diesel fuel cost about 20 cents a gallon more now than it did a year ago. That's partly due to a drop in diesel exports from Russia. At the same time, winter demand for heating oil is picking up. Monte Wiederhold, who runs a trucking company in southern Ohio, adds a surcharge to his freight rates to cover the higher diesel cost. He knows that extra expense will get passed along in other prices.
MONTE WIEDERHOLD: I'm a consumer just like you are. When I go to the store, you know, and I buy a gallon of milk or a pound of butter, fuel is in absolutely everything that we buy. You know, if you got it, a truck brought it.
HORSLEY: The Trump administration is counting on a domestic energy boom to help keep other prices in check. But if oil prices stay this low, the president may not see the surge of drilling he's been hoping for. The administration has been opening lots of new territory to oil drilling while also relaxing environmental restrictions, but domestic oil production has risen only modestly from what was already a record high level last year. West Texas crude oil's trading for less than $60 a barrel today. That's below the breakeven point many oil producers say they need to justify drilling new wells.
Scott Horsley, NPR News, Washington.
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