Lower Gas Prices Are Putting Cash Back in Drivers’ Wallets

We're Here to Help

View Rates

As gas prices continue to decline across the U.S., drivers are starting to feel some financial breathing room — at least at the pump. From 2023 to 2025, the national average has dropped by 12%, with some states seeing even steeper decreases. For many, this extra cash is being funneled into savings, groceries, and debt payments. But despite the relief, skepticism about the future of fuel prices remains high.

Key Takeaways

• U.S. gas prices have dropped for three straight years — from $3.40 in 2023 to $3.00 in 2025 — a 12% decline.
• Colorado leads the nation with the steepest drop in gas prices, falling $0.86 per gallon since 2023, followed by Utah (-$0.50), New Mexico (-$0.47), and Arizona (-$0.46).
• Only two states experienced an average gas price increase since 2023: Washington (+$0.17) and Oregon (+$0.11).
• 27% of drivers say they’re saving more than $50 monthly due to lower gas prices, with many using that money to save/invest (43%), buy groceries (37%), or pay debts (30%).
• 70% of drivers believe gas prices won’t stay low through the end of the year.
• The top retailers Americans want to see open gas stations with cheaper gas are Target (18%), Aldi (16%), and Whole Foods (15%).

How Have U.S. Gas Prices Changed Since 2023?

• U.S. gas prices have dropped for three straight years — from $3.40 in 2023 to $3.00 in 2025 — a 12% decline.

• Top 12 States With the Largest Drop in Gas Prices (2023–2025):

• • Colorado: -$0.86
  • Utah: -$0.50
  • New Mexico: -$0.47
  • Arizona: -$0.46
  • Nevada: -$0.43
  • Michigan: -$0.39
  • Hawaii: -$0.38
  • Maine: -$0.37
  • Louisiana: -$0.37
  • Ohio: -$0.37
  • North Dakota: -$0.37
  • Tennessee: -$0.36

• Only two states experienced a gas price increase since 2023, Washington (+$0.17) and Oregon (+$0.11).

How Drivers Are Using Their Gas Savings

• Florida drivers were the most likely to say they’re spending less on gas compared to last year (43%), followed by Wisconsin (38%) and Pennsylvania (33%) drivers.
• 27% of drivers say they’re saving more than $50 monthly due to lower gas prices, with many using that money to save/invest (43%), buy groceries (37%), or pay down debt (30%).
• Drivers in Illinois (57%), Colorado (50%), North Carolina (44%), and Missouri (40%) were the most likely to say they are saving over $50 each month on gas.
• Nearly 1 in 6 drivers say lower gas prices have encouraged them to visit family and friends more often.
• 1 in 9 drivers say they’ve taken more road trips thanks to cheaper gas. Millennials (13%) and Gen Z (12%) are the most likely to say so.
• Gen Z is the most likely to save or invest their gas savings, with 65% doing so, the highest of any generation.
• Gen Z is also the most likely to use their gas savings on dining out or entertainment (41%), nearly triple the rate of baby boomers (14%).

Are Americans Feeling Relief?

• 70% of drivers don’t trust that gas prices will stay low through the end of the year, and skepticism is especially high in some states.
• In Michigan, 83% say they don’t expect prices to remain low through year’s end, followed closely by Wisconsin (79%) and Colorado (79%) residents.
• Ohio (50%), Tennessee (50%), and Missouri (57%) had the lowest levels of skepticism, making them the most confident states in future price stability.
• 36% of drivers want to see major retailers open their own gas stations to offer lower fuel prices. These are the retailers people want to see offer lower-cost fuel:
  • Target: 18%
  • Aldi: 16%
  • Whole Foods: 15%
  • Dollar General: 12%
• Despite lower prices at the pump, nearly half of drivers (49%) say they feel no real financial relief from gas costs.

Methodology

We analyzed gas price data from the U.S. Energy Information Administration, World Population Review, and AAA to understand how prices have changed across the U.S. from 2023 to 2025:

• 2023–2025 national average gas prices were sourced from the U.S. Energy Information Administration.
• 2023–2024 data was sourced from World Population Review and reflects the average price per gallon by state as of June 7, 2024.
• 2025 data was sourced from AAA, based on the average gas prices by state as of May 28, 2025.

We also conducted a nationwide survey of 1,006 American drivers in May 2025 to explore how they’re responding to changes in gas prices, both financially and emotionally.

About Payless Power

Payless Power helps Texas residents save on electricity with affordable prepaid energy plans and no-deposit options. Whether you’re trying to cut monthly costs or gain more control over your usage, Payless Power offers flexible solutions that fit your lifestyle, especially as everyday expenses like fuel continue to fluctuate.

Fair Use Statement

If you’d like to share these insights, you’re welcome to do so for noncommercial purposes. When citing this content, please link back to Payless Power with proper attribution.

URL copied to clipboard