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The average price of a gallon of gasoline in the United States fell below 3 dollars for the first time since May 2021, according to data from the American Automobile Association (AAA).
The report, cited by CNN, indicates that the national average stood at $2.99 on Tuesday, following several weeks of declines driven by the drop in crude oil prices and the increase in energy production.
The last time fuel was this cheap, the country was just beginning to emerge from the pandemic, and inflation was over 4%.
The reduction in prices extends across much of the territory, with 18 states where the gallon costs less than $2.75, including New Mexico, South Carolina, Wisconsin, Iowa, and Colorado.
The decline stands in stark contrast to 2022, when the Russian invasion of Ukraine caused an unprecedented surge and prices exceeded 5 dollars per gallon, prompting the then Joe Biden administration to release emergency oil reserves.
Currently, President Donald Trump has made reducing energy costs a priority for his second term.
His strategy to boost national production under the slogan “drill, baby, drill” aims to maintain stable and competitive prices at the pumps.
The U.S. oil barrel is trading today at around $59, compared to $70 last year and $81 in 2022.
The abundant supply of crude oil, driven by OPEC and record extraction in the United States, has put downward pressure on prices.
JPMorgan Chase analysts predict that if the oil group led by Saudi Arabia does not reduce production, Brent crude could fall to $50 per barrel in 2026 and even to $40 by the end of 2027, which would keep fuel prices low for several years.
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