Fact Check Analysis: Gas prices dip below $3 per gallon, the lowest since 2021

This article was brought to our attention following a reader’s question about what factors have driven gas prices down in late 2025, and whether former President Donald Trump enacted any special measures to cause this drop, especially in contrast to gas prices during the Biden administration. We examine the article’s claims about falling fuel prices and analyze whether presidential policies or broader economic forces better explain these trends, ensuring users have the context needed to understand what’s behind recent changes at the pump.

Gasoline prices in the United States can shift rapidly, influenced by global oil markets, domestic production, regulatory trends, seasonal demand, and unforeseen disruptions such as weather events or geopolitical tensions. In 2021, prices rebounded following pandemic-induced lows as the global economy reopened. During 2021-2024, under President Joe Biden, fuel prices rose due to a combination of recovering demand, regulatory changes targeting emissions, and international shocks, including war and supply chain stresses. Beginning in 2025, a policy shift toward increased domestic oil and gas production, along with favorable market conditions, contributed to a significant drop, bringing average prices below $3 per gallon for the first time in four years.

This claim is accurate. Independent data from sources including Yahoo News confirms that, as of December 2025, the U.S. national average for regular gasoline is about $3 per gallon—a level not seen since May 2021. Multiple fuel price tracking agencies, such as GasBuddy and AAA, corroborate the current average and its position as a multi-year low. There is no evidence of misstatement for this data point.

This assertion holds up against recent market analyses. As shown in CBS News reporting, and verified in our research, every U.S. state experienced declining gas prices in late 2025. Notably large drops occurred in parts of the Midwest and South, reflecting both increased supply and seasonally lower demand. The phrase “exceptionally rare” is supported by historical comparisons, as simultaneous decreases across all states are uncommon.

This explanation is backed by current data from the U.S. Energy Information Administration. As of autumn 2025, U.S. crude oil output reached nearly 14 million barrels per day, setting new records. Meanwhile, global oil prices declined owing to oversupply and slowing seasonal demand—a typical trend as winter approaches. These combined factors created downward pressure on retail gas prices nationwide. See EIA forecasts and recent production figures for further corroboration.

Recent research highlights that policy plays a role but is only one piece of the puzzle. In 2025, the Trump administration prioritized expanding domestic oil and gas production, loosened certain regulatory measures, and accelerated permitting for extraction and refining. These changes did contribute to an increase in supply, which tends to put downward pressure on prices. For instance, the White House outlined these policies and their intended effects in a 2025 press release. However, it is important to understand that global oil prices, demand cycles, war, and weather disruptions are also significant drivers.

Under President Biden, several regulatory steps were taken to address carbon emissions, including pauses on leases and pipeline reviews, as cited in official summaries by the House Natural Resources Committee. Some sources, like The Heartland Institute, claim that these approaches increased domestic energy costs by over $2,500 per household. But even with policy differences, factors such as pandemic recovery and supply shocks had major impacts on prices in both administrations.

Ultimately, while recent Trump-era policies did aim to support increased domestic production, which impacts gas prices, complex global and market forces were just as influential. No single action or policy alone determines pump prices.

Each principal claim in the referenced article is accurate, based on current market data and reputable reporting. There is little evidence of misinformation or misleading bias in its presentation; the article correctly attributes price declines primarily to broader economic conditions and production trends rather than a simplistic political explanation. However, it is worth emphasizing for readers that neither the Trump nor Biden administrations had sole control over gas prices—multiple global and domestic forces interact, shaping what Americans pay at the pump. The coverage presents the facts clearly, with no conspicuous omissions or distortion.

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Read the original reporting at CBS News.