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AAA Reports Lowest National Fuel Prices in Years, Signaling Potential Economic Respite for Consumers.
Gasoline prices across the US have decreased so much that countrywide, average gas prices are lower than in recent history. AAA reports that US average gas prices are currently $2.80 (U.S) a gallon, the lowest average price since March 2021. Although California has historically been known for having some of the highest state gasoline prices, California's gasoline prices are now down compared to last year. An analysis from AAA shows California's average gas price on January 29, 2020 (11 days prior) was about fifteen cents lower than on average one year from now (February 31, 2020) about twenty five cents lower than the national average.
Through January 29, 2020 (the most recent available data), California has maintained the status of being the second-most costly state (on average) for gasoline to Hawaii ($4.21 per gallon at this time). Several factors have influenced gasoline prices across the country. Crude oil has been steady since late 2025 and overall the demand for gas has been falling across the United States. The U.S. Energy Information Administration noted a record amount of domestic gasoline supplied to the United States, which increased from 234.3 million barrels to 242 million barrels. At the same time, domestic gasoline output has continued to fall at a little over 9.0 million barrels daily.
As such, OPEC+, the group of nation-member producers in the market, is not planning to increase production early in 2026 due to a decrease worldwide in demand. This also has had an effect on the direction of the market. The price of oil has dropped, as evident by U.S. crude oil settling at about $56.00 a barrel flat. There are significant differences in prices across many different local regions.
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