Gas Just Fell Below $4 Right Before the Thanksgiving Drive

For the millions of Americans who will drive to Thanksgiving, the timing finally looks better. AAA put the national average for regular gasoline at $3.9788 a gallon on Tuesday, November 10, the first time below $4 in nearly four months and the lowest level since July. Prices fell about 3 cents in a day, roughly 17 cents in a week and close to 39 cents in a month, according to Fox Business. GasBuddy’s Patrick De Haan told CBS News he expects prices to keep easing through the holiday.

It has been a rough year at the pump. Prices peaked around $4.50 in May, dipped to $3.77 in early July, then climbed back to $4.47 in late September. Both outlets link this year’s high prices to the conflict involving Iran, which disrupted oil flows through the Strait of Hormuz; Brent crude peaked at $113.43 on October 30. Oil has since fallen below $90 a barrel, and CBS reports traders have been hoping for a US–Iran deal. Even so, gas still costs about $1 more than a year ago.

The seasonal pattern is helping too. Stations have switched to cheaper winter-blend gasoline, since summer-blend rules run from June 1 to September 15, and winter driving demand is lower. AAA says the change of season typically trims 10 to 30 cents a gallon. Regional averages are already below the national figure in places. Minnesota averaged $3.86, down from $4.26 a month earlier, but well above the $2.94 drivers there paid last Thanksgiving.

AAA has not yet released its official Thanksgiving forecast, but it told KEYC it expects numbers similar to last year’s 81.8 million travelers rather than a new record. The advice is simple: prices are falling but could rebound if oil jumps, so there is little reason to fill up early. Use a price-comparison app on the road, avoid filling up at highway service plazas when cheaper stations are a short detour away, and budget for prices still noticeably higher than last year.

Sources: CBS News, Fox Business