Low Demand, Falling Oil Prices Weigh on Thanksgiving Gasoline Costs

Tens of millions of Americans are expected to hit the roads once again this Thanksgiving—but they’ll be paying less at the pump than they did during the holidays a year ago.

Retail gasoline prices averaged $3.29 per gallon across the U.S. on Nov. 20, the Monday before Thanksgiving, according to figures published by the Energy Information Administration.

That’s down 10% from the same time last year, and 13% less after adjusting for inflation.

U.S. gasoline prices are down year-over-year due to several factors, including lower demand than usual this fall and an early transition to winter-blend gasoline in California.

Concerns over slowing global economic growth have also continued to weigh on crude oil prices, the primary driver of gasoline prices. Oil prices account for more than half of the total cost to produce a gallon of gasoline.

Brent crude prices declined 15% from $96.55/bbl on September 27 to $82.32/bbl on Nov. 20, their lowest levels since July.

Gasoline prices averaged $4.42 per gallon on the West Coast on Nov. 20, down 8% year-over-year; regional gasoline prices are usually highest in the West due to tight supply-demand conditions and the region’s limited connections with major refining centers.

Rocky Mountain regional prices averaged $3.20 per gallon, down 12% from last year.

East Coast gasoline prices averaged $3.17 per gallon, down 11% year-over-year.

Prices in the Midwest averaged $3.12 per gallon, an 11% decrease.

And prices on the Gulf Coast, home to roughly half of the nation’s total refining capacity, averaged $2.79 per gallon, down 8% from the same time last year.

The American Automotive Association (AAA) estimates that 55 million people will travel 50 miles or more this Thanksgiving holiday, a 2% increase from 2022.

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