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Gas Prices Dip Below $3 for First Time Since 2020

10/21/2025

46 3 Full Breakdown

Summary

Story summary

The national average price for gasoline fell to $2.98 per gallon, the first sub-$3 reading since 2020, according to GasBuddy.
The decline follows increased oil production by OPEC+ and weaker demand as fall approaches.
In Michigan, prices fell to $2.79, the lowest since April 2021.
California prices remain around $4.60 per gallon.
Analysts predict prices could reach the $2.80s by year-end, signaling continued relief for consumers.

History

Historical Context

The 1973 OPEC oil embargo, initiated in response to U.S. support for Israel during the Yom Kippur War, caused oil prices to surge from $3 to $12 per barrel. This crisis prompted the U.S. to confront its energy dependency, leading to initiatives for alternative energy sources. Today, gasoline prices reflect ongoing market volatility and the impact of geopolitical events on global oil supply.

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Story summary

The national average price for gasoline fell to $2.98 per gallon, the first sub-$3 reading since 2020, according to GasBuddy.
The decline follows increased oil production by OPEC+ and weaker demand as fall approaches.
In Michigan, prices fell to $2.79, the lowest since April 2021.
California prices remain around $4.60 per gallon.
Analysts predict prices could reach the $2.80s by year-end, signaling continued relief for consumers.

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