Analysts expect fuel prices to fall further but Texas has already floored it with the cheapest gas in the country
Published on Sep 08, 2025 at 2:46 AM (UTC+4)
by Molly Davidson
Last updated on Sep 04, 2025 at 2:47 PM (UTC+4)
Edited by
Emma Matthews
Texans are reveling in the cheapest gas in the country.
While gas prices keep falling nationwide, nowhere else in the US stacks up to what drivers are paying in the Lone Star State.
This Labor Day saw the lowest national average since 2021.
Analysts think the slide could push fuel under $3 later this fall. But in Texas, that milestone has already landed at the pump.
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The big picture behind the pump drop
The national average for a gallon of regular unleaded sat at $3.190 this Labor Day.
That’s the cheapest the holiday weekend has seen since 2021, and down from $3.332 just a year ago.
It’s not 2020-level cheap, when gas prices plunged to $2.22, but compared to recent years, it feels like a bargain at the pump.
So why are prices suddenly falling?
Flooding at an Indiana refinery caused a short-lived bump, but the overall trend is down thanks to a perfect storm of timing.
Refineries are about to switch to cheaper winter gasoline in mid-September, and with summer road trips winding down, demand is dropping fast.
Patrick De Haan, GasBuddy’s head of petroleum analysis, called it a ‘remarkably affordable’ summer.
Though he did warn that the usual wildcards are still in play – hurricane season, trade battles, and the ongoing fallout from Russia’s war on Ukraine.
AAA echoed that prices could dip below $3, but stressed the oil market is too volatile to guarantee anything.
Even so, the momentum looks firmly pointed down.
The cheapest gas in the country
Where you live makes all the difference.
In California, drivers are still getting rinsed at $4.612 a gallon. Brutal.
Meanwhile, Texas drivers are paying just $2.769 – the cheapest gas anywhere in the country.
That’s not just edging under the national average.
It’s beating predictions analysts are dangling for the fall.
The gap is huge.
One driver in Houston fills up for under $3 while someone in Los Angeles is staring at a pump that’s nearly double.
Same country, totally different reality.
Gas prices are expected to keep dropping, but Texas isn’t waiting.
They’ve already floored it straight into sub-$3 territory while the rest of America watches the needle fall.
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Molly Davidson is a Junior Content Writer at Supercar Blondie. Based in Melbourne, she holds a double Bachelor’s degree in Arts/Law from Swinburne University and a Master’s of Writing and Publishing from RMIT. Molly has contributed to a range of magazines and journals, developing a strong interest in lifestyle and car news content. When she’s not writing, she’s spending quality time with her rescue English staffy, Boof.
