COLUMBUS, Ohio (Oct. 20, 2025) — It’s starting to feel like 2020 again — at least at the gas pump. The national average price of gasoline has dipped below the $3 mark for the first time in years, falling 4.1 cents over the past week to $2.98 per gallon, according to data from GasBuddy®.
The national average is now 19.3 cents lower than a month ago and 15.2 cents below last year’s level. Diesel prices are also down, averaging $3.59 per gallon, a decline of 3.7 cents in the past week.
“Gas prices have finally fallen below $3 per gallon nationally — the earliest date we’ve seen that since 2020, when COVID drove prices to historic lows,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “OPEC+ deserves much of the credit, having steadily raised oil production throughout 2025.”
De Haan noted that 35 states now have average prices below $2.99, with some drivers paying as little as $1.99 per gallon in Evans, Colorado. “Barring any major disruptions,” he added, “gas prices are likely to remain slightly below year-ago levels and could stay under $3 for much of the next few months.”
Oil Market Factors
Oil prices have been sliding amid concerns about a potential global supply glut. West Texas Intermediate (WTI) crude was trading at $57.03 per barrel early Monday, down more than $2 from last week, while Brent crude fell to $60.72 per barrel.
Analysts cite increased OPEC+ production and a slowing Chinese economy — which has reduced demand for crude — as major contributors to the decline.
Meanwhile, a small fire at BP’s refinery in Whiting, Indiana, caused temporary wholesale price spikes in the Great Lakes region but did not significantly affect national averages.
U.S. Supply and Demand
According to the Energy Information Administration (EIA), U.S. oil inventories rose by 3.5 million barrels during the week ending October 10, while gasoline supplies dipped slightly. Refinery utilization dropped to 85.7%, reflecting seasonal maintenance slowdowns and lower consumer demand.
The EIA also reported that gasoline demand fell to 8.45 million barrels per day, consistent with the seasonal decline as drivers travel less in the fall.
State-by-State Snapshot
Drivers are seeing the cheapest prices in Oklahoma ($2.45), Texas ($2.54), and Arkansas ($2.55). The most expensive gas can be found in California ($4.60), Hawaii ($4.45), and Washington ($4.36).
Among the biggest weekly changes, Ohio saw an increase of 20.4 cents, while Illinois (-12.1¢) and Michigan (-10.1¢) experienced sharp declines.
Diesel Decline
Diesel prices have also trended downward, with the median price at $3.49 per gallon, about 10 cents below the national average. The lowest diesel prices are hovering around $2.92 per gallon, while the most expensive average more than $4.69.
