GasBuddy predicts gas prices will see their lowest levels since 2020, averaging $3.25 per gallon, for drivers traveling for Thanksgiving. Patrick De Haan, GasBuddy's Head of Petroleum Analysis, attributes the decline to seasonal factors. People staying closer to home during the holidays, cooling temperatures, and decreased demand are all contributing to the lower prices.

De Haan highlights the drop in crude oil prices for four consecutive weeks, which he believes has aided the affordability of gas. Despite being higher than pre-pandemic levels, De Haan notes that comparing inflation to gas prices at that time to now, the difference in gas prices is minimal. While not reaching the pre-COVID average of $2.80 per gallon, over 65,000 gas stations nationwide are below the $3.00 mark, with 13 states averaging below $3.00 per gallon.

"The only golden rule is that there's not a golden rule to filling your tank other than to shop around," De Haan tells Yahoo Finance when asked about tips for seeking out lower gas prices, adding: "... without knowing what prices are down the street, you're kind of a blind consumer."

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Video Transcript

JULIE HYMAN: Well, millions of Americans set to hit the road for Thanksgiving , and one thing drivers will be thankful for, at least the ones without EVs, falling gas prices. According to GasBuddy, gasoline prices on Thanksgiving day could be at their lowest level since 2020, at $3.25 a gallon. Joining us now Patrick De Haan. GasBuddy Head of Petroleum Analysis. That seems like good news here, Patrick. So talk to us about the dynamics affecting gasoline pricing right now, and how long the drop in gas prices could last.

PATRICK DE HAAN: A lot of the dynamic right now is simply seasonal in nature. Americans stay a little bit closer to home as temperatures start to cool down. And as we get deeper and deeper into fall and then winter, demand for gasoline typically is in full decline. And that's part of the reason why gas prices have been weakening going into this holiday. In addition, much of the nation has long switched over to cheaper winter gasoline, which is a much simpler version of gasoline in wider areas. So the system is not as fragmented, which helps reduce costs.

We've also gotten a benefit from crude oil prices, which have fallen for four straight weeks. Of course, they have rallied here in the last couple of days, but a lot of this has put a tremendous amount of downward pressure on gas prices as millions of Americans take to the road. Where we move forward? Well, there's some clouds on the horizon. OPEC will be meeting later this week at their annual meeting to discuss that drop in oil prices. And it is possible that they either extend cuts or actually increase cuts, which could have an adverse effect on the price of gasoline. But for now, the national average at its lowest since January.

JOSH LIPTON: And Patrick, how much higher are those gas prices, though, right now versus, let's say, before the pandemic? Because I feel like that's what a lot of people still use as their baseline. That's what they kind of react and respond to.

PATRICK DE HAAN: Yeah, so looking at the nominal price today compared to where we were prior to the pandemic, while gas prices back then were about 2.80 a gallon or so. Now if you adjust for inflation, which is certainly a hot topic right now, nominal-- or excuse me, adjusted for inflation, the price today is not too far off the mark from 2018 and 2019. But as you mentioned, it's all about the feel. And for 65,000 gas stations now, that feel is starting to be more in line with what we saw years ago. 65,000 stations now below the $3 a gallon mark. In fact, now 13 states, where average prices have also slipped below that $3 mark.

JULIE HYMAN: So Patrick, talk to us about what effect this tends to have on demand. Because we talk about demand destruction when the prices get high. Are we going to see people driving more with gasoline prices falling back down?

PATRICK DE HAAN: Well, we don't usually see much of a response in the cooler months, when there's not as much of a window of opportunity, that is, Americans are stuck with their kids in school, you don't see many road trips happening in the coldest months when the snow is flying in the north. So I wouldn't expect it to lead to much of an increase in demand at all, just because the opportunity is not there for Americans to enjoy it.

Certainly, if it would stick around next summer, I'm sure it would hit gasoline demand in the summer months when there is that opportunity. But for now, with economic concerns, you know, demand has been weakening. Although I will say, yesterday, according to new GasBuddy statistics, gasoline demand compared to the prior Monday was up 7%. So that data suggesting that a lot of Americans are already starting to hit the road.

JULIE HYMAN: And Patrick, if prices still feel a bit too high for some people, any kind of tricks of the trade you offer your own friends and family there?

PATRICK DE HAAN: I think the number one thing, the only golden rule, is that there's really not a golden rule to filling your tank other than to shop around, use an app or, of course, like GasBuddy, or Google, or Waze, because without knowing what prices are down the street, you're kind of a blind consumer. So knowing where those lower prices are with the smartphone app. If you're crossing a state line this holiday, be very careful, that can either bring higher prices down the road, or it can lead to cheaper prices. Using your cruise control,

I mean, these are kind of the mundane everyday tips, but they're still very useful. And depending on how you pay, loyalty programs, are free, and they can save $0.05 to $0.10 a gallon off. There's a lot of different ways depending on the payment method. Of course, credit card discounts, rebates, rewards, cash discounts. There's a lot of ways to avoid paying what the street price says.

JOSH LIPTON: All right, great insight. Patrick De Haan from GasBuddy. Patrick, always great to see you. Thank you for joining us.

PATRICK DE HAAN: Thanks for having me.