Americans on pace to spend lowest amount on gasoline in last two decades

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00:00While fears about inflation and tariffs have been driving the economic headlines,

00:04there is a bit of good news when it comes to pain at the pump.

00:07Americans are spending less of their disposable income on gasoline

00:10than any time in the past two decades, except during the lockdowns of the COVID-19 pandemic.

00:18The U.S. Energy Information Administration expects drivers to spend less than 2%

00:23of their personal disposable income on gasoline by the end of 2025.

00:27The main drivers, so to speak, are cheaper gas prices as well as low oil prices.

00:34The EIA projects the average price of a gallon of regular unleaded to land at $3.10 for the year

00:40and to keep falling to $2.90 a gallon in 2026.

00:44The average in 2024 was $3.30.

00:48AAA says the average price of regular unleaded is $3.18 nationally, down $0.06 from a year ago.

00:56Some of the lowest prices are in Texas, Missouri, and North Carolina,

00:59while drivers out west in California, Oregon, and Washington State are paying the highest prices.

01:05The EIA also says crude oil prices will fall from $68 a barrel in August

01:10to about $59 a barrel in the fourth quarter, and go even lower in early 2026,

01:16as OPEC continues to ramp up production.

01:19The bottom line is the price at the pump is falling and Americans are saving money.

01:23For more unbiased updates, download the Straight Arrow News app or go to san.com.