Gasoline prices in the US are experiencing a significant decline just in time for Thanksgiving, with a possibility for further reductions until Christmas. This decline can be attributed to the struggles faced by the OPEC Plus oil cartel, which is currently dealing with apparent disarray. These lower gas prices have played a role in tackling the inflation rate for much of the year.

The dip in gas prices below $3 per gallon can be seen in over a dozen states, including Montana, Florida, and Colorado. This decline in prices can be attributed to the recent slump in oil prices, primarily driven by weak fuel demand in China and certain European regions, as well as increased production in Brazil, Canada, and the United States. The national average price for a gallon of regular gasoline currently stands at $3.28, reflecting a decrease of about 6 cents from the previous week and 27 cents from a month ago. This is notably lower than the price of $3.64 per gallon recorded at the same time last year.

In addition to gasoline, diesel prices have also seen a decline, with a reduction of approximately 23 cents per gallon over the past month and over $1 per gallon in the last year. This decrease in diesel prices is expected to have a positive impact on food prices, as diesel is the primary fuel for agriculture and heavy transport. The reduction in oil prices can be attributed to reports of the postponement of the planned OPEC Plus meeting. Reaching a new agreement to cut production has proven to be challenging, and it would be difficult for member countries to accept even lower production quotas.

According to new estimates, the national average of gas prices could drop to the lowest level in years around Thanksgiving. The average national price of gas is currently $3.31 per gallon, nearly a 10 percent decrease from last year's average during the same period. The decline in gas prices can be attributed to lower demand for gas coupled with lower oil prices. Currently, 11 states have a below $3 a gallon average, with the potential for an additional five states to see gas prices below $3 by Thanksgiving. As millions of Americans prepare to travel for Thanksgiving, this decline in gas prices comes at a crucial time.

The U.S. could potentially see the lowest gas prices since 2021 by Christmas. This news is especially significant as the Transportation Security Administration (TSA) expects a high number of passengers to pass through airport security checkpoints during the Thanksgiving travel season. AAA predicts that most Thanksgiving travelers will reach their destinations by car, with an estimated 49.1 million drivers on the road. This combination of lower gas prices and increased travel could contribute to a busy and cost-effective holiday season for many Americans.