BALTIMORE, MD—The national average price of gasoline is nearing the $2.99 per gallon mark, a threshold not sustained in years, as domestic prices drop sharply and global oil markets react to renewed trade war concerns.
According to GasBuddy data compiled from more than 12 million price reports, the U.S. average price for regular gasoline has fallen 6.4 cents in the last week to $3.02 per gallon as of October 13, 2025. This average is down nearly 14 cents from a month ago and is lower than the price one year ago.
“Americans appear to be on the cusp of seeing the national average drop below $3 per gallon and potentially stay there for the first time in years,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
Trade Tensions Drive Oil Price Drop
The primary catalyst for the falling pump prices has been a dramatic plunge in the crude oil market. Late last week, WTI crude oil dropped below $60 per barrel after President Trump threatened China with new, crippling tariffs over rare earth exports. The move sent shockwaves through global markets, leading to a stock market selloff and fears of a new trade war that would curb oil demand.
While WTI crude was up slightly in early Monday trade to $59.49, it remains significantly lower than its $61.85 level from the previous Monday.
“Rising trade tensions between the U.S. and China, with fears it could weigh on oil demand growth in the top two oil consumers, has weighed on oil prices,” noted Giovanni Staunovo, a UBS commodities analyst. In addition, continued production increases from the OPEC+ alliance are adding more supply to a weakening market.
Consumer Relief and Regional Trends
For American consumers, the declining prices mean a significant financial boost. GasBuddy noted that, with rising wages and falling gas prices, Americans are spending the smallest share of their paycheck on gasoline in many years. The most common price encountered by motorists nationwide is now $2.79 per gallon.
Regional prices show a sharp contrast, however:
- Lowest Averages: Oklahoma ($2.50), Mississippi ($2.62), and Texas ($2.62)
- Highest Averages: California ($4.62), Hawaii ($4.46), and Washington ($4.41)
The biggest weekly price drops occurred in Ohio, Michigan, and Indiana. Petroleum supplies remain generally tight for both gasoline and diesel, but the recent oil market turbulence is outweighing these inventory concerns.
A GasBuddy analyst discusses oil market factors and the outlook for falling pump prices in this video about US gas prices falling below $3 per gallon.
In and around the Nottingham area, the cheapest gas this week could be found at these locations…
Photo via Pixabay
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