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Today’s average price of gas in the U.S. is $3.39 per gallon, down $0.01 from yesterday, $0.04 from last week and $0.06 from last month.
The drop in gas prices is a welcome reprieve for Americans who have grappled with sky-high prices at the pump. A flurry of issues have contributed to higher gas prices this year, including rebounding demand in gasoline after Covid lockdowns, lower supplies and sanctions on Russian gas imports across the globe.
While gas prices may be falling, they remain high. The average price of a gallon of gas one year ago today was $3.54.
Which State Has the Highest Gas Prices?
Hawaii has the highest price of gas, with an average of $4.88 per gallon of regular gas.
Which State Has the Lowest Gas Prices?
Texas has the lowest price of gas, with an average of $2.95 per gallon of regular gas.
What’s Happening With Gas Prices?
Gas prices declined last fall after oil supplies rebounded and demand cooled. But prices have been rebounding early in 2023, leaving analysts and consumers anxious over what could happen next for prices at the pump.
The cost of crude oil, which plays a big role in what consumers pay at the gas pump, slid during the second half of 2022 as oil traders anticipated weaker demand and a global economic downturn.
Another reason prices dropped was a boost in fuel supplies after President Joe Biden set in motion a record release of oil from global petroleum reserves. In July, the Treasury Department estimated that the releases, both domestically and internationally, reduced gasoline prices by as much as 40 cents per gallon.
But oil prices are back on the rise as global demand for crude rebounds, driven by China’s emergence from Covid lockdowns. There’s concern that oil supplies could be squeezed further by a worsening of the Russia-Ukraine war. Meanwhile, the U.S. is taking some oil off the market—by refilling its strategic petroleum reserve.
“Concerns are increasing that without additional oil, supply will tighten in the weeks ahead, especially as the nation starts to move away from softer demand in the height of winter,” says Patrick De Haan, head of petroleum analysis for GasBuddy.
“Moving forward, it doesn’t look good for motorists, with prices likely to continue accelerating,” De Haan says.
GasBuddy has predicted that pump prices could hit a national average of $4 before and during the summer driving season, with prices of around $7 possible in California’s largest metro areas.
5 Ways to Save Money on Gas
Gas prices remain higher than they were a year ago. If you need help managing those costs, consider these smart strategies to save at the pump.
1. Download Gas Apps
Gas apps are arguably the easiest way to find cheap gas near you. These apps require little commitment compared to loyalty and rewards programs that limit you to a specific store or brand of gas station.
There are a variety of gas apps out there to help you make an informed decision about where to fill up your tank next. Popular apps like GasBuddy, Waze and Google Maps are free and show gas prices in real-time via a map directly in the app.
Some gas apps offer complementary rewards programs to help you save at the pump. GasBuddy, for instance, offers a rewards program that can save users up to 25 cents per gallon at the pump.
Read more: 5 Apps To Find The Cheapest Gas Near You
2. Enroll in Gas Rewards Programs
If you have a favorite gasoline retailer, consider enrolling in its rewards program to earn points each time you fill up. Points can later be redeemed for discounts on your gas purchases. Most major gas station chains, including Exxon, Shell and Circle K, have rewards programs.
3. Stack Savings With Grocery Store Rewards
Grocery chains also have rewards programs that provide discounts on gas. Kroger, for example, gives members one fuel point for every $1 spent in Kroger supermarkets. The points can be redeemed at Kroger gas stations or other gas station chains.
Being strategic with where you redeem the points will reap the biggest savings; purchasing gas at a Kroger gas station, for example, will give you a redemption value of up to 1,000 fuel points, for $1 off per gallon.
4. Buy Gas with a Rewards Credit Card
If you pay off your credit card balance in full each month, you can maximize your savings by purchasing gas with a cash-back credit card. Some cards have specific spending categories for earning high percentages of cash back (think 5% cash back per $1 spent), and gas is a popular category. Pay off your credit card balance in full each month to avoid costly interest.
Read more: Best Gas Credit Cards
5. Fill up Your Tank on Mondays
You might be surprised to find that filling your gas tank on a certain day can maximize your savings. A survey by GasBuddy found that gas is the cheapest in most states on Monday, while Wednesday, Thursday and Saturday were the most expensive.
Find The Best Credit Cards for Gas in 2023