GasBuddy Warns USA Gas Price Relief May be Short Lived

In a blog posted on its website this week, GasBuddy highlighted that gasoline prices in the U.S. are “plunging” but warned that the “relief may be short lived”.

GasBuddy outlined in the blog that, according to its data, the average price of gasoline in the country had fallen 19.5 cents over the last week and stood at $4.26 per gallon. The national average was down 17.8 cents from a month ago and was $1.18 per gallon higher than a year ago, GasBuddy pointed out in the blog.

The most common U.S. gas price encountered by motorists was $3.99 per gallon, “unchanged from a week ago”, the blog revealed. This was followed by $3.89 per gallon, $4.09 per gallon, $3.79 per gallon, and $4.19 per gallon, according to the blog, which noted that the median U.S. gas price was $4.09 per gallon, “down 20 cents from last week and about 17 cents lower than the national average”.

The top 10 percent of stations in the country averaged $5.73 per gallon and the bottom 10 percent averaged $3.54 per gallon, the blog revealed, adding that the states with the lowest average prices comprised Indiana, at $3.66 per gallon, Texas, at $3.76 per gallon, and Oklahoma, at $3.77 per gallon.

The states with the highest average prices were California, at $5.99 per gallon, Washington, at $5.66 per gallon, and Hawaii, at $5.55 per gallon, according to the blog, which highlighted that the biggest weekly changes were seen in Colorado, with a drop of 33.9 cents, Florida, with a drop of 33.8 cents, and Ohio, with a drop of 29.2 cents.

“Average gasoline prices declined in all 50 states over the last week, with GasBuddy now tracking 15 states where the average price of gasoline has fallen below $4 per gallon, offering motorists some of the most widespread relief seen in weeks,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in the blog.

“Much of the decline was driven by falling oil prices and the unwinding of recent price cycles, as growing optimism surrounding a potential U.S.-Iran agreement helped ease concerns over global oil supplies,” he added.

De Haan warned in the blog, however, that “the coast is anything but clear”.

“Oil prices edged higher Sunday evening as uncertainty surrounding a potential deal persisted and renewed Israeli attacks added another layer of geopolitical risk,” he said.

“While motorists may continue to see some short-term relief, some price-cycling states could soon experience another upward swing as retailers run out of room to lower prices further. Overall, any setback in negotiations could quickly reverse the recent decline in fuel prices,” he warned.

In a blog posted on its site on May 26, GasBuddy noted that the nation’s average price of gasoline had fallen 6.6 cents over the last week and stood at $4.45 per gallon, according to its data. GasBuddy pointed out in that blog that the national average was still up 41.0 cents from a month ago and that it was $1.32 per gallon higher than a year ago.

“Average gasoline prices declined in 40 states over the last week as falling oil prices helped offset earlier price cycling in many markets, bringing relief to motorists after several states had already seen sharp increases,” De Haan said in this blog.

“Much of the decline came after renewed optimism surrounding a potential U.S.-Iran agreement pushed oil prices lower, easing geopolitical pressure on energy markets,” he added.

“In many states, that drop created breathing room after recent price cycles and allowed pump prices to fall again,” he continued.

In its latest gasoline fuel update, which was released on June 2, the U.S. Energy Information Administration (EIA) showed a recent declining price trend for U.S. regular gasoline. According to this update, the fuel price averaged $4.490 per gallon on May 18, $4.475 per gallon on May 25, and $4.305 per gallon on June 1.

Although the EIA’s gasoline fuel update outlined a recent price drop, it still highlighted that the June 1 price was $0.789 higher than the price two years ago, and $1.178 higher than the year ago price.

Of the five Petroleum Administration for Defense District (PADD) regions highlighted in the EIA’s latest fuel update, the West Coast was shown to have the highest regular gasoline price as of June 1, at $5.500 per gallon. The Gulf Coast was shown in the update to have the lowest regular gasoline price as of June 1, at $3.804 per gallon.

A glossary section of the EIA site notes that the 50 U.S. states and the District of Columbia are divided into five districts, with PADD 1 further split into three subdistricts. PADDs 6 and 7 encompass U.S. territories, the site adds.

In its latest short term energy outlook (STEO), which was released on May 12, the EIA projected that the U.S. regular gasoline retail price will average $3.88 per gallon in 2026 and $3.62 per gallon in 2027. In its previous STEO, which was released in April, the EIA projected that the U.S. regular gasoline retail price would come in at $3.70 per gallon this year and $3.46 per gallon next year.

Both STEOs showed that the 2025 U.S. regular gasoline retail price averaged $3.10 per gallon.

According to the AAA Fuel Prices website, the average price of regular gasoline in the U.S. is $4.261 per gallon, as of June 3. Yesterday’s average was $4.290 per gallon, the week ago average was $4.459 per gallon, the month ago average was $4.446 per gallon, and the year ago average was $3.138 per gallon, the site showed.

In a statement posted on its website on May 28, AAA noted that the national average for a gallon of regular gasoline was “down 12 cents from last week at $4.42”.

“Crude oil prices have been going down this week amid reports of peace talks with Iran but the fragile situation could cause oil prices to spike again if a ceasefire deal isn’t reached,” AAA said in that statement.

“Gas prices remain the highest they’ve been in four years and will likely remain elevated as the busy summer driving season gets underway,” it added.

In a maternal healthcare event hosted in the White House Oval Office on May 11, which was streamed live on the White House YouTube page, U.S. President Donald Trump said, “as soon as this is over with Iran … you’re going to see gasoline and oil drop like a rock”. 

To contact the author, email andreas.exarheas@rigzone.com