As Americans enjoy relief at the pump, fuel analysts are sounding the alarm: don’t celebrate just yet. While average U.S. gas prices are nearing their lowest levels in years, the sharp decline is being driven not by abundance or efficiency—but by slowing demand in a cooling economy.
According to GasBuddy’s latest data, the national average for a gallon of gasoline dropped to $3.02 on Monday, marking the fourth consecutive week of declines. Prices are now over 42 cents lower than a year ago and more than a dollar below the May 2022 peak. In some cities, including Atlanta, drivers are now seeing prices at $2.87 per gallon—a 53-cent drop year-over-year and among the lowest levels seen since 2020.
Patrick De Haan, head of petroleum analysis at GasBuddy, cautions that low prices are not always good news.
“When the economy slows, gasoline demand drops — along with demand for other refined products like diesel and jet fuel,” De Haan explained.
That drop in demand is what’s driving prices down, not any sudden surge in production or technological breakthrough. A sluggish economic outlook, concerns over tariff policies, and rising geopolitical uncertainties have created a supply-demand mismatch where fuel prices decline—but so does the optimism about the broader economy.
-
National average gas price: $3.02 (down 1.3 cents from last week, 10.6 cents from a month ago)
-
Diesel average: $3.47 (lowest since 2021)
-
Atlanta average: $2.87 (down 3.6 cents from last week, 53.2 cents from last year)
-
Georgia statewide average: $2.83
-
Lowest price in Atlanta: $2.47
-
Highest price in Atlanta: $3.49
In Georgia, gas prices remain below the national average, with Macon down to $2.80 and Chattanooga slightly up to $2.64. Despite a recent uptick in oil prices—WTI crude closed at $67.59 per barrel, bolstered by tensions in the Middle East and economic optimism from China—analysts believe pump prices will stay stable heading into Memorial Day.
A 10-year comparison of Atlanta gas prices on May 12 paints a clear picture of volatility:
-
2024: $2.87
-
2022 peak: $3.94
-
2020 pandemic low: $1.63
-
2015–2019 range: $2.20–$2.72
Today’s average price reflects a return to pre-pandemic norms, but with very different underlying dynamics.
With refinery maintenance nearing completion and summer travel season on the horizon, prices could see modest fluctuations in the coming weeks. However, barring a surge in economic activity, De Haan believes the $3-per-gallon threshold is likely to break soon. That would mark the first time in nearly three years the national average dips below that psychological line.
But as De Haan warns, “That shouldn’t necessarily be celebrated.” While it brings temporary consumer relief, it’s also a strong signal that the economic engine is losing momentum.
