Gas Prices Drop Below $3 in 33 States

In a notable trend, the price of a gallon of regular gas has fallen below $3 in 33 states, with Maryland and Florida joining this list recently. Nationally, the average price is approximately $3.01, with expectations of dipping further below this mark over the weekend. Analysts indicate that current gasoline demand remains soft, contributing to the declining prices, especially leading into January. Patrick Danan, a gas expert, cautions that while gas prices have generally bottomed out in late December in previous years, fluctuations based on oil prices and production cuts from OPEC keep predictions uncertain. States like Oklahoma enjoy lower prices due to minimal gasoline taxes and proximity to refineries, unlike states such as California, which has significantly higher taxes and regulations. Though there have been instances of gas prices dipping below $2 at specific stations, it is unlikely that any state will see an average drop below this threshold. The impact of winter travel trends also contributes to price changes, as colder weather typically reduces demand, driving prices down. Danan emphasizes that the reduction in gas prices could play a role in alleviating inflation concerns.