Drivers heading out for Thanksgiving are getting a rare break this year, as gas prices are holding steady near last year’s levels and remain among the lowest seen around the holiday since 2021. GasBuddy projects the average price on Thanksgiving Day will be $3.02 a gallon, matching last year’s holiday average. The American Automobile Association’s (AAA) national average on Tuesday morning came in slightly higher at $3.05.
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Where prices are lowest
The cheapest gas is in the Plains, where prices are well below the national average. Some standouts include:
- Oklahoma: $2.49
- Kansas: $2.69
- Texas: $2.65
AAA says 28 states now have average gas prices under $3 a gallon.
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The American Automobile Association says that car rentals are expected to be 15% cheaper this Thanksgiving than during the 2024 holiday.
Why prices are falling
AAA attributes the dip to declining crude oil prices, which have dropped about 17% since June to roughly $63 per barrel.
ABC News reports refineries are back online now that the fall maintenance season is over, boosting supply and helping push prices lower.
Patrick De Haan, head of petroleum analysis at GasBuddy, spoke to ABC News, saying, “OPEC has continued to increase or restore oil production for much of this year, and that has put a lot of downward pressure on oil prices.”
A slowdown in fall driving after a busy summer season is also easing demand.
Where gas is most expensive
Out West, prices remain the highest in the continental U.S.:
- California: $4.59 a gallon
- Washington: $4.18
- Oregon: $3.81
Do gas prices affect travel?
Despite economic uncertainty, most Americans say gas prices aren’t keeping them home. Gas Buddy’s survey found 74% of drivers say fuel costs do not affect their Thanksgiving travel plans – up from 56% last year.
Still, De Haan warned that concerns about a cooling economy could weigh on future travel.
“Drivers have grown more resilient to price swings, yet I worry that concerns about a cooling economy may be weighing on Americans’ willingness to travel,” he said.
He expects prices to continue dropping between Thanksgiving and Christmas.
