Gas prices in the United States are on the decline, with the national average price set to potentially drop below $3 per gallon for the first time since May 2021. As prices fall, drivers are regaining some buying power at the pump. A comparison of gas prices over the past year shows that $20 now gets you more gallons than it did a year ago or at the peak of gas prices in June 2022.
Gas prices vary widely by state, with 20 states already paying less than $3 per gallon for regular gas. Despite the decrease in gas prices, the overall affordability of gas is best measured by comparing it to wages. Based on the average hourly wage in September 2024, it now takes the average worker about 40 minutes to earn $20, which can buy a little over six gallons of gas at the current national average price. This is compared to 41 minutes in 2019 and 43 minutes in 2004.
Affordability is a key factor in determining the impact of gas prices on consumers. Despite fluctuations in prices over the years, the overall affordability of gas remains relatively stable when compared to wages. The current drop in gas prices may provide some relief to consumers, but the overall impact on their budgets can vary depending on individual circumstances.
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