Gas prices drop to four-year low before Memorial Day weekend

In the United States, as of May 22, 2025, gas prices have reached a significant four-year low ahead of the Memorial Day weekend, with the average nationwide price recorded at $3.17 per gallon. According to the U.S. Energy Information Administration (EIA), this reflects a 14% decline from the previous year, highlighting the impact of decreasing crude oil prices influencing retail gasoline costs across various regions. The regional variations in gas prices are noteworthy; for instance, the West Coast has seen average prices of $4.29, despite a 10% reduction from 2024 prices. Comparatively, the Gulf Coast stands at $2.79 per gallon, down by 13%, while the East Coast prices average around $2.99, marking a notable decrease of 17% year-over-year. The Midwest and Rocky Mountains reported averages of $3.03 and $3.13 per gallon, showcasing declines of 15% and 12% respectively, adjusted for inflation. The recent drop in gas prices arrives as a record number of travelers, approximately 45.1 million people, are expected to take trips that exceed 50 miles during the holiday period. Organizations such as AAA forecast that nearly 39.4 million will opt to travel by car. Despite concerns over the rising costs of living, many Americans are nonetheless making travel plans, demonstrating a resilient commitment to summer travel. Traditionally, gas prices tend to increase during the onset of summer due to factors including heightened demand and the transition of refineries to producing more expensive summer gasoline blends. Historically, prices increased 19% from January to May in previous years, excluding anomalies such as 2020. Notably, analysts suggest that the decline in gasoline prices may continue during the summer months. Andy Lipow, President of Lipow Oil Associates, forecasts prices stabilizing within a range of $3.25 and $3.50 per gallon, which significantly contrasts with last year's prices. The presence of various external factors, notably tariffs and anticipated slower economic growth, is creating pressures on oil prices. Additionally, optimism surrounding the potential actions of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) regarding production increases could lead to further declines in gas prices. The OPEC+ group, which is evaluating whether to allow another substantial output increase, is projecting a growth in global demand for oil by approximately 1.3 million barrels per day through 2026. In conclusion, this year’s gas price landscape reflects broader economic dynamics, including fluctuating crude prices and varying consumer behaviors as the summer travel season approaches. Despite the lower prices this year, market analysts remain cautious, aware of the complex interplay between demand, production capabilities, and geopolitical factors that could influence future price trends.