Gas prices slide near 2023 lows as Thanksgiving drivers hit the road
Gasoline prices are at their lowest level of the year heading into Thanksgiving. The national average is around $3.27 per gallon, down $0.28 in the last month — and $0.34 lower from a year ago, according to AAA data.
Drivers in 13 states are now seeing averages of less than $3.00 per gallon. Even the costliest state, California, now registers an average price below the $5.00 level, at $4.92, down $0.52 from one month ago.
The steady decline is a boon for the Biden administration during a year when consumers have seen the cost of shelter, food, and services go higher. “The president wants — specifically as we go into Thanksgiving and then into Christmas and New Year's and the holiday season — to give the American public and the American family a break. And that's what we're seeing right now,” Amos Hochstein, senior energy advisor to President Biden, told Yahoo Finance.
Hochstein pointed out that pump prices are at the lowest Thanksgiving level since 2020 and far below their all-time highs almost a year and a half ago.
"It's really not one region versus another, but the whole country is seeing lower prices," he added.
The less expensive winter blend, lower seasonal demand, and a squeeze in wholesale margins are all contributing to what one analyst predicted would result in prices dropping "like wet feathers."
The decline comes just in time for what is expected to be the third-busiest Thanksgiving travel period since AAA began keeping records more than two decades ago.
However, $3 per gallon is still a "pain point" for 40% of drivers surveyed by AAA, according to the organization's Northeast senior manager Robert Sinclair.
"I’m not breaking out the champagne yet," said Sinclair. "Demand is down 3% this year compared to last. Gasoline was more expensive last year but we’re buying less now. I think that’s a strong indicator with what’s happening in personal finance."
Drivers can expect prices to keep dropping if oil continues its downward trend. West Texas Intermediate (CL=F) and Brent (BZ=F) crude prices had a volatile year and are currently sitting roughly 17% lower than their average last year.
Oil costs account for about 50% of what drivers pay at the pump, according to AAA. They tend to rise again with the return of summer blend gas as well as longer days and better weather, which encourages people to hit the road.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
Click here for in-depth analysis of the latest stock market news and events moving stock prices.
Read the latest financial and business news from Yahoo Finance
