Drivers across the U.S. are experiencing some welcome relief at the pump as national gas prices continue to fall. According to new data released on May 8, 2025, the national average price for a gallon of regular gasoline has dropped three cents over the past week to $3.15, nearly 49 cents cheaper than this time last year.
The Energy Information Administration (EIA) reported that U.S. gasoline demand decreased last week from 9.09 million barrels per day (b/d) to 8.71 million b/d, while gasoline supply ticked up slightly. Despite a slight dip in gasoline production to 9.7 million b/d, overall supplies remain strong, helping to drive prices down.
To put this into perspective, the national average gas price on May 8, 2025, was $3.152, compared to $3.186 one week prior and $3.246 one month ago. This time last year, prices were significantly higher at $3.640. Meanwhile, OPEC+ has announced plans to increase oil output again in June, adding to a global surplus that could continue to push crude oil and gas prices lower through the summer months.
At the close of trading on May 7, 2025, West Texas Intermediate (WTI) crude oil settled at $58.07 per barrel, down $1.02. Crude inventories in the U.S. decreased by 2 million barrels last week, with current levels about 7% below the five-year seasonal average. Despite lower inventories, the anticipated surge in global oil production is easing market pressures, offering travelers a more affordable summer road trip season.
Across the country, drivers are seeing significant regional differences in gas prices. In California, the price is the highest at $4.82 per gallon, followed by Hawaii at $4.49 and Washington at $4.26. On the other hand, Mississippi boasts the lowest price at $2.64, followed by Louisiana at $2.70 and Oklahoma at $2.73.
Travelers can monitor current fuel prices along their routes using tools like the AAA TripTik Travel Planner. However, while gas prices are easing, the cost of electric vehicle (EV) charging continues to climb slightly. The national average price per kilowatt-hour (kWh) at a public charging station rose by two cents to 36 cents this week.
In terms of EV charging, Hawaii has the highest price at 54 cents per kWh, followed by Alaska and West Virginia at 47 cents. Conversely, Kansas features the lowest rates at 22 cents per kWh, followed by Missouri at 25 cents and Delaware at 26 cents.
As we look forward to the summer travel season, gas prices trending downward and oil supply rising suggest that drivers are likely to enjoy lower costs at the pump. However, experts warn that continued shifts in global oil markets and regional supply dynamics could cause local price fluctuations. They recommend planning ahead and using fuel price tracking apps to lock in savings wherever possible.
In related news, crude oil prices saw an uptick on May 8, 2025, due to optimism surrounding impending trade talks between the U.S. and China. Both nations are the world’s largest oil consumers, and the outcomes of these discussions could significantly impact oil distribution and production. West Texas Intermediate finished up $1.84, or 3.2%, to close at $59.91 a barrel on the New York Mercantile Exchange, while global standard Brent crude rose $1.72, or 2.8%, to finish at $62.84 a barrel.
Investors are keenly watching the situation as U.S. Treasury Secretary Scott Bessent is set to meet with China’s top economic official on May 10, 2025, in Switzerland for negotiations over a trade war that has been disrupting the global economy. The optimism around these talks has provided support to the market, according to SEB analyst Ole Hvalbye.
However, analysts caution that the recent tariff-driven volatility in the oil market is not over. Jim Ritterbusch of U.S. energy consultancy Ritterbusch and Associates noted that the global risk premium that previously influenced oil prices has been replaced by a tariff premium that fluctuates with the latest headlines from the Trump administration.
In another trade development, U.S. President Donald Trump and British Prime Minister Keir Starmer announced a "breakthrough deal" on trade that maintains a 10% tariff on goods imported from the UK while Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to U.S. goods. Meanwhile, OPEC+ is expected to increase its oil output, which could further pressure prices. Despite a scheduled output hike taking effect, OPEC oil output edged lower in April 2025, primarily due to a cut in Venezuelan supply and smaller drops in Iraq and Libya.
Analysts at Citi Research have lowered their three-month price forecast for Brent to $55 per barrel from $60 while maintaining a long-term forecast of $60 per barrel this year. They also indicated that a U.S.-Iran nuclear deal could drive Brent prices down toward $50 per barrel due to increased global supply, but without such a deal, prices could rise to over $70.
U.S. sanctions on two small Chinese refiners for buying Iranian oil have created difficulties in receiving crude and led them to sell products under other names, showcasing the disruptions Washington's stepped-up pressure is inflicting on Tehran's biggest oil buyer.
As the summer travel season approaches, the dynamics of gas and oil prices will continue to evolve, influenced by global market conditions and geopolitical developments.
