National average gas price at $3.07, may fall under $3 per gallon: reports

Some industry experts say the average cost of gasoline across the country is hovering near $3 and may soon fall below.

The national average was about $3.07 per gallon as of Wednesday, down about 10 cents from last month and about 15 cents from a year ago, according to AAA.

“Americans appear poised to see the national average drop below $3.00 per gallon and perhaps stay at that level for the first time in years, as prices have fallen in the vast majority of the country,” said Patrick De Haan, head of oil analysis at Texas-based GasBuddy, which tracks prices at more than 150,000 stations across the country.

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With gas prices falling in more than 40 states and oil prices falling below $60 a barrel, the downward trend could continue in the coming weeks, De Haan said.

“The good news may not end if the national average reaches that magic level of $2.99,” he said.

He added that with wages rising and fuel prices falling, Americans are spending a smaller portion of their income on gas than they have in years.

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A woman was filmed taking money from her wallet. With higher wages and lower fuel costs, Americans now spend a smaller portion of their income on gas than they did years ago, De Haan added. (Istock)

States with the lowest gas prices on Wednesday included Texas at $2.65, Wisconsin at $2.67, and Arkansas at $2.64, according to AAA.

Meanwhile, places with the highest gas prices on Wednesday include California at $4.65, Hawaii at $4.48, Washington at $4.46, and Oregon at $4.07.

Two reasons for the portfolio softening are weak demand after the summer travel season and the fact that refineries are switching to less expensive winter fuel blends, NBC business correspondent Brian Cheung told TODAY on Wednesday.

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Cars are shown driving on the highway. The Energy Information Administration recently projected that less than 2% of people’s disposable personal income will be spent on gasoline in 2025. (Jonas Falsberg/Image Alliance via Getty Images/Getty Images)

“The reason is that refineries are switching to what they call winter blend, which is a little cheaper to produce,” Cheung told TODAY. “And there are fewer drivers on the road because we’re past summer, unfortunately, and because of that, demand is down, and gas prices are up.”

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The Energy Information Administration recently projected that less than 2% of people’s disposable personal income will be spent on gasoline in 2025, down from an average of 2.4% over the previous decade and the lowest share since 2005, excluding 2020.

FOX Business’ Daniella Genovese contributed to this report.