Gas prices in North Carolina reached a happy milestone on Thursday

The average price for a gallon of regular gas in North Carolina dropped below $3 a gallon on Thursday, the first time that’s happened in more than a year.

After a month of near steady declines, the average cost of a gallon of regular unleaded statewide was a hair under $2.99 on Thursday, according to AAA. That’s 20 cents cheaper than when the month began and the lowest since it was last at $2.99 on Oct. 1, 2021, said AAA spokeswoman Tiffany Wright.

Gas prices soared after Russia’s invasion of Ukraine last winter and peaked again over the summer. The average price per gallon in North Carolina topped out at $4.67 in mid June, according to AAA.

Since then, a slowing economy has helped reduce demand and pull down the price of oil, which is about 33% lower than it was in June. According to the Energy Information Administration, refiners delivered about 3.3 million barrels of gasoline a day last week, down more than 700,000 barrels per day from the same week last year.

The usual drop in demand this time of year has also boosted supplies, said AAA’s Andrew Gross.

“The seasonal pattern of less driving due to shorter days and crummy weather, combined with a lower oil cost, is driving gas prices lower,” Gross said.

The price of diesel, which fuels most long-haul trucks, has also declined from its summer peak. A gallon of diesel in North Carolina was selling for $4.87 on average Thursday, down from $5.77 a gallon in June, according to AAA.

The slide in prices is happening nationwide, said Patrick De Haan, head of petroleum analysis at GasBuddy.com.

“Not only has the decline in gasoline prices lasted five straight weeks, with again every state seeing a weekly decline in its average, but average diesel prices have fallen in 49 states over the last week as well,” De Haan wrote in his blog on Monday. “The relief is saving Americans roughly $20 per fill-up compared to six months ago.”

It’s not clear how long the downward trend will continue. Oil prices spiked Wednesday, as both the International Energy Agency and OPEC predicted a rebound in demand over the coming year, according to Reuters. Still, after twice topping $120 a barrel earlier in the year, West Texas Intermediate crude oil remains well under $80 a barrel.

Prices at the pump vary across the country and within North Carolina. Retailers are charging about $3.22 a gallon on average in Durham and Orange counties, according to AAA, while the average price in neighboring Wake has fallen to $3.03. The average in Mecklenburg was $3.04.

Ashe and Watauga counties in the mountains had the lowest average prices Thursday, at just under $2.74, while Dare residents on the coast were paying the most: $3.28 per gallon.

Nationwide, prices varied from an average of $2.65 a gallon in Texas up to $5.15 in Hawaii, according to AAA. The average price per gallon of regular unleaded in the U.S. on Thursday was $3.19.