Gas prices are on the decline in the United States, with the national average expected to soon fall below $3 per gallon for the first time since May 2021. This decrease is significant, considering that gas prices peaked at $5.02 per gallon in June 2022. With gas prices varying by state, some states already pay less than $3 per gallon, while others still exceed $4 per gallon. In California, $20 will get you 4.35 gallons at an average price of $4.60, while in Texas, the same amount will get you 7.5 gallons at an average price of $2.67.
The affordability of gas is also influenced by inflation and wages. Comparing current gas prices to wages, it now takes about 40 minutes for the average worker to earn $20, spending that on just over six gallons of gas. This is a similar timeframe to what it took in 2019 and 2004, despite significant fluctuations in gas prices over the years.
Drivers may find some relief in the declining gas prices, but the overall affordability of gas is best measured by comparing it to wages. As the national average price of gas continues to drop, consumers may have regained some purchasing power at the pump.
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