US real gasoline prices pre-Thanksgiving dip to lowest level since 2020

US regular-grade gasoline averaged $3.06/gal on the Monday before Thanksgiving, according to latest analysis from the US Energy Information Administration (EIA). The price is just 2¢ higher than the same time last year in nominal terms, but the lowest real (inflation-adjusted) pre-Thanksgiving price since 2020, when pandemic-related lockdowns sharply reduced fuel demand and travel.

The Thanksgiving holiday weekend is one of the heaviest travel times of the year. The American Automobile Association (AAA) projects 81.8 million people will travel at least 50 miles for the holiday this year, up 1.6 million from last year. Of those, an estimated 73 million will travel by car, keeping gasoline consumption elevated.

Retail gasoline prices have drifted lower, by about 12¢/gal on average, since the end of summer, driven primarily by falling crude oil prices and seasonal factors, EIA noted. Prices typically peak during the summer months when demand is higher and when refiners must supply more costly summer-grade gasoline to meet federal and state environmental specifications.

Crude oil prices, which account for roughly half of the retail gasoline cost, have weakened significantly. Brent crude averaged $63.94/bbl through Nov. 24, its lowest inflation-adjusted monthly average in real terms since December 2020, contributing directly to the decline in pump prices.

Gasoline prices continue to vary widely across the US due to differences in regional supply-demand balances, state taxes, and fuel specifications.

The West Coast posted the nation’s highest prices, averaging $4.07/gal on Nov. 24, a 5% increase from last year. The region’s historically elevated prices reflect limited pipeline connections to other major refining hubs, stringent state fuel requirements, and higher-than-average state taxes. Supply has tightened further following the recent closure of the Phillips 66 Wilmington refinery in Los Angeles, prompting a rise in gasoline imports to the region.

Drivers on the Gulf Coast continue to benefit from the nation’s lowest retail gasoline prices.