Gas prices are nearing their lowest levels in four years as millions prepare for Thanksgiving travel. The national average for a gallon of gas reached $3.07 on Monday, a slight increase from last year, according to data from AAA. However, prices remain lower than those recorded on Thanksgiving Day in the past two years and significantly below levels from 2020, when the pandemic drastically reduced demand.

Currently, 28 states have average gas prices below $3, with Oklahoma reporting the lowest at $2.50 per gallon. AAA forecasts that nearly 82 million people will travel at least 50 miles from home during the Thanksgiving holiday.

The recent decline in gas prices is largely attributed to a significant drop in crude oil costs. Patrick de Haan, head of petroleum analysis at GasBuddy, noted that the global benchmark price for Brent crude oil has decreased by about 17% since June, now sitting at approximately $63.40 per barrel. This price drop coincides with the end of maintenance season for refineries, which allows for increased fuel production as facilities resume full operations.

“With refinery maintenance now wrapping up, that’s going to mean that refineries are able to ramp up oil into their plants,” de Haan explained.

Additionally, demand for gasoline has decreased as the busy summer travel season transitions into a slower autumn period, further contributing to lower prices. AAA stated, “Despite the burst of gasoline demand that will occur during Thanksgiving week, overall demand is low this time of year, which helps keep pump prices down.”

Prices vary widely across the country. In California, drivers face the highest average gas prices at $4.60 per gallon, while four other states, including Oregon and Alaska, have averages above $3.50. Conversely, some gas stations in Texas and Oklahoma are offering prices as low as nearly $2 per gallon.

“Crossing state lines – that’s a danger zone for gas prices,” de Haan added, highlighting the regional disparities.

Looking ahead, de Haan suggested that gas prices may continue to decline. As more refineries complete maintenance, gas supply is expected to increase, while demand typically decreases during the colder winter months. “As we get closer to Christmas, I think the news will continue to improve with gas prices potentially falling below $3 per gallon in the next few weeks,” he said.