Millions of travelers hitting the road this Memorial Day weekend will find some welcome relief at the gas pump, with prices reaching a two-decade low. Breitbart News reported that the national average cost of gasoline on Memorial Day 2025 is projected to be $3.08 per gallon—its lowest level, adjusted for inflation since 2003. The drop is expected to continue through the summer, thanks to rising oil production.
Energy data analytics company GasBuddy released a forecast this week predicting that gas prices over the summer travel season will remain well below the highs seen in recent years. Their data points to an average of $3.02 per gallon from Memorial Day through Labor Day, with the chance that drivers might see prices dip under $3.00 per gallon on some days.
Compared to 2024, when the Memorial Day average was $3.58, this year marks a significant 50-cent drop. Consumers are expected to benefit as oil markets stabilize and more supply becomes available. Brent Crude, a major global oil benchmark, currently trades at $65.07 per barrel—down from $83.71 just one year ago. “
American road trip culture remains resilient,” the GasBuddy team stated as part of their 2025 Summer Travel Survey release, which estimates that nearly 70 percent of Americans plan to take a road trip during the summer months.
With prices reaching lows not seen since 2021 in nominal terms, and the cheapest Memorial Day prices adjusted for inflation in over 20 years, analysts point to dynamics within the oil industry as a key driver. Increased production—both domestically and abroad—has helped bring balance to the global oil supply, reducing costs downstream to consumers.
While energy markets have always been influenced by a range of global factors, the recent consistent growth in oil supplies has made a measurable difference in how much Americans are paying at the gas pump. The current cost per barrel of Brent Crude is one of the lowest seen in several years, offering broader impacts beyond fuel prices, including the cost of goods and transportation more generally.
GasBuddy noted that the low price level this summer excludes the extraordinary market collapse of 2020, when travel halted amid the early stages of the COVID-19 pandemic. That year saw gasoline prices drop to historic levels, but under exceptional circumstances.
President Donald Trump, who made pledges to lower energy costs a central point of his 2024 campaign, is receiving political credit as Americans prepare for a summer of cheaper travel. During the election cycle, Trump focused heavily on energy independence and bringing down fuel costs, a message that resonated with many voters.
At the time, his statements faced strong criticism from political opponents. Among them was Sen. Cory Booker, who sharply dismissed Trump’s affordability pledges using strong language that questioned the integrity of those claims. Booker’s phrasing, widely circulated, was paraphrased to compare the promises to “false excrement.”
Now, with day-to-day prices showing steady declines and projected to stay low, the administration is celebrating what it sees as the fulfillment of one of its more visible campaign promises. Trump advisors have circulated talking points highlighting the significance of these savings for working Americans.
According to GasBuddy's projections, the average price of gasoline between Memorial Day and Labor Day is likely to hover around $3.02 per gallon nationwide. On certain days, particularly when demand softens or supply outpaces expectations, the average could drop below $3.00 for the first time since 2021.
The travel season is often associated with price spikes due to increased demand. However, this year’s consistent supply appears to be counterbalancing those usual upticks. With nearly 7 in 10 Americans planning road trips, consumer fuel demand remains strong, yet steady oil availability has helped keep price increases at bay. For now, industry observers believe the lower pricing trend could continue, barring any disruptions in supply or unexpected geopolitical developments that might constrain oil flow.
The drop in fuel prices could also have a ripple effect on the broader economy. Lower gasoline costs mean more discretionary income for consumers, which can, in turn, boost spending across travel, hospitality, and retail sectors during the crucial summer season.
Additionally, logistics and industries that rely heavily on transportation are seeing savings in operational costs. For small businesses, especially those with delivery and fleet components, this shift offers a temporary reprieve from the inflationary pressures of recent years.
While the direct cause of the lower prices revolves around increased oil production, both domestic policy and global supply chain recalibrations have shaped the current fuel landscape. These changes demonstrate how quickly energy markets can adapt to meet economic demands.
