Gasoline prices are approaching $3 per gallon as oil prices drop, demand decreases, and cheaper fuel blends are introduced. The average US price is $3.06 per gallon, the lowest since January. Some states are still above $4, but many are below $3 with further declines expected.

Declines in gas prices are due to waning demand, winter fuel blends, and low oil prices. President Trump’s tariff threats against China have pushed oil prices below $60 per barrel. OPEC+ supply increases and progress on Middle East peace have raised concerns about oversupply.

Citi analysts warn of weak gasoline demand through 2026 and 2027 due to vehicle efficiency improvements and growing EV fleets in the US and China. The Energy Information Administration projects an average price of $3.10 per gallon in 2025, down $0.20 from last year, with further declines to $2.90 in 2026.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre. For further stock market news and analysis, visit the Yahoo Finance website. Stay informed with the latest financial and business news from Yahoo Finance.

Read more at Yahoo Finance: Gas prices hit lowest level since January as oil slides below $60