Gas Prices Plunge Toward $2.99/gal as Oil Slips Below $60
by: GasBuddy
Published: October 13, 2025
Chevron Station in Huntington Beach
BOSTON...The nation’s average price of gasoline has fallen 6.4 cents over the last week and stands at $3.02 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 13.7 cents from a month ago and is 14.4 cents per gallon lower than a year ago. The national average price of diesel has decreased 3.5 cents in the last week and stands at $3.628 per gallon.
“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, as prices have fallen across the vast majority of the country,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “With well over 40 states seeing gas prices decline and oil plunging below $60 per barrel to end the week, the good news may not end if — and when — the national average hits that magical $2.99 mark. We could even see a handful of stations in places like Oklahoma, Texas, or even Wisconsin drop below $2 per gallon in the weeks ahead — something not seen since the pandemic. In addition, with wages up and gas prices down, Americans are spending the smallest share of their paycheck on gasoline in many years.”
OIL MARKET DYNAMICS
Oil prices plunged below $60 late last week after President Trump threatened China with crippling new tariffs in response to China limiting the export of rare earths, leading WTI crude oil to plunge below $60 and the stock market to selloff on the chance of a new trade war. In addition, OPEC+’s continued production increases may bring more oil to a market that needs less in light of trade tensions resurfacing. However, markets were again rebounding in early Monday trade after China clarified that it will allow the export of rare earths but is instituting a new control method. WTI crude was up 59 cents to $59.49 in early trade, down from last Monday’s $61.85 per barrel level. Brent crude oil was up 59 cents to $63.32 per barrel, down from last Monday’s $65.56 per barrel level. “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,” said Giovanni Staunovo, UBS commodities analyst, in an e-mail.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending October 3, 2025, showed U.S. oil inventories rose by 3.7 million barrels, and are about 4% below the seasonal average for this time of year, while the SPR rose 300,000 barrels to 407.0 million. Gasoline inventories fell by 1.6 million barrels and stand about 1% below the five-year seasonal average, while distillate inventories fell by 2.0 million barrels and are about 6% below the five-year seasonal average. Refinery utilization rose 1.0 percentage points to 92.4%, while implied gasoline demand, EIA’s proxy for retail demand, rose 401,000 bpd to 8.919 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists stood at $2.79 per gallon, down 20 cents from last week, followed by $2.89, $2.99, $2.69, and $2.59, rounding out the top five most common prices.
The median U.S. gas price is $2.85 per gallon, down 9 cents from last week and about 17 cents lower than the national average. The top 10% of stations in the country average $4.46 per gallon, while the bottom 10% average $2.45 per gallon.
The states with the lowest average prices: Oklahoma ($2.50), Mississippi ($2.62), and Texas ($2.62).
The states with the highest average prices: California ($4.62), Hawaii ($4.46), and Washington ($4.41).
Biggest weekly changes: Ohio (-18.3¢), Michigan (-13.9¢), Indiana (-13.4¢), Washington (-12.2¢), Texas (-10.8¢)
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $3.69 per gallon, up 10 cents from last week, followed by $3.49, $3.59, $3.39, and $3.29, rounding out the top five most common prices.
The median U.S. diesel price is $3.53 per gallon, down 2 cents from last week and about 10 cents lower than the national average. Diesel prices at the top 10% of stations in the country average $4.68 per gallon, while the bottom 10% average $2.98 per gallon.
The states with the lowest average diesel prices: Texas ($3.12), Oklahoma ($3.15), and Mississippi ($3.22).
The states with the highest average diesel prices: Hawaii ($5.11), California ($5.09), and Washington ($5.01).
Biggest weekly changes: Texas (-10.1¢), Florida (+7.2¢), Michigan (-7.1¢), Tennessee (-6.1¢), New Mexico (-6.0¢)