PredictIQ Quantitative Think Tank Center:It's the cheapest Thanksgiving Day for drivers since 2020. Here's where gas prices could go next.

Drivers find lower gas prices at the pump this Thanksgiving

Drivers taking on the Thanksgiving travel rush this year have one thing to be thankful for: Lower gas prices. 

Nationally, the average price of gas hit $3.27 a gallon on Thursday, according to data from auto club AAA. Meanwhile, data at GasBuddy, a fuel tracking service, showed the national average at $3.24 a gallon, marking the cheapest Thanksgiving Day for drivers since 2020, GasBuddy head of petroleum analysis Patrick De Haan said Thursday on social media.

"As millions of Americans gear up to hit the road for Thanksgiving, the national average is seeing its longest streak of declines in over a year, reaching a ninth straight week as gas prices fall to their lowest since January," De Haan said Monday in a statement. 

Gas prices have plunged due to a combination of weakening oil prices and flattening demand for gasoline, according to AAA. Those factors could sustain a drop off in gas prices through the rest of the holiday season, according to De Haan. 

"The fall in gas prices, largely seasonal due to weakening gasoline demand, could extend for another week or two, leading to potentially the lowest gas prices since 2021 by Christmas," De Haan added.

Falling gas prices come even as more than 55 million people are expected to hit the roads for Thanksgiving this year, marking the busiest turkey day travel rush in several years, according to AAA's estimate.  

However, while the national Thanksgiving Day gas price is lower this year, prices at the pump differ widely from state to state, according to AAA data. Fuel prices have fallen below $3 a gallon, on average, in 13 states, including Texas at $2.74, Mississippi at $2.77 and Georgia at $2.80, the data shows. Meanwhile, fuel still costs more than $4 a gallon in Washington State, Oregon and Nevada, according to AAA. 

Gas Prices Wobble in 2023

Although prices at the pump will put a smaller dent in travelers' wallets this Thanksgiving Day compared to years past, fuel prices remain higher than they were earlier this year, De Haan said Wednesday on social media. 

GasBuddy data shows that gas prices actually rose by as much as roughly 60 cents from January to August 2023, topping $3.80 a gallon. However, the national gas price has declined fairly steadily since September, according to the data.  

In:
• Gas Prices
• Thanksgiving

Elizabeth Napolitano

Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News' BizTech Unit and worked on the Associated Press' web scraping team.