From Google Research:

Yes, gasoline prices recently hit their lowest point in over four years, dropping below $3 a gallon nationwide in late 2025 due to lower crude oil, increased supply, cheaper winter blends, and decreased demand, creating significant savings for consumers ahead of the holidays
.
Key Details

Milestone: The national average dropped below $3 per gallon for the first time since around May 2021, notes AAA Gas Prices.
Timing: This occurred in late 2025, with major drops seen around Thanksgiving and continuing into December.
Driving Factors:
Lower Crude Oil: Crude oil prices have been down, hovering around $60 a barrel, according to AAA.
Increased Production: Higher U.S. oil output adds to supply.
Winter Blend: The cheaper-to-produce winter-blend gasoline contributes to lower prices.
Reduced Demand: Lower overall gasoline demand also helps keep prices down.
State Variations: Prices varied significantly, with states like Oklahoma seeing prices around $2.30-$2.40, while California remained higher.

Why It Matters
This drop provides substantial savings, potentially up to $200 per year for U.S. drivers, and comes at a good time for holiday travel, making driving more affordable.