US gasoline prices fall 1:09
(CNN) --
The plunge in gasoline prices reached another milestone Friday in the US, with the national average sinking to the lowest level since September 2021.
The sharp decline in prices at gas stations is encouraging news for consumers after a year of high prices for groceries, rent and other necessities.
A gallon of regular gasoline now sells for an average of $3.18, according to the American Automobile Association (AAA).
This represents a decrease of 14 cents in the last week and 56 cents in the last month.
The last time the national average was cheaper than $3.18 was on September 14, 2021, according to AAA.
It's a notable change from earlier this year, when Russia's invasion of Ukraine helped catapult gasoline prices above $5 a gallon for the first time in history.
Nineteen states currently have a median gasoline price below $3 a gallon, including Minnesota, Ohio, and Colorado.
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Gas prices in the US are now lower than a year ago
In a sign that gasoline prices could continue to decline, US oil prices fell another 3% to $73.58 a barrel on Friday morning.
Patrick De Haan, head of oil analysis at GasBuddy, told CNN on Friday that the national average may fall below the $3 threshold just in time for Christmas Eve.
De Haan noted that, according to GasBuddy metrics, the average price of gasoline fell to $2.99 as of Friday morning.
The drop in the price of gasoline has been due to various factors, not all of them positive.
For example, the same recession fears that are rocking the stock market have raised concerns in energy markets about weakening demand.
According to De Haan, demand for gasoline in the US has been "quite weak" even at this time of year, due, at least in part, to economic uncertainty.
Concerns about the economy and policies related to covid in China have also weighed on energy markets.
China removes virus tracking app as country braces for covid-19 uptick
On the bright side, US refiners have increased production of gasoline, diesel, jet fuel and other petroleum products.
US oil companies have also gradually increased supply.
According to energy analysts, the release by the Biden administration of unprecedented amounts of emergency oil from the Strategic Petroleum Reserve earlier in the year has also contributed to the price collapse.
Despite widespread fears earlier in the year, Russia's oil exports have not been derailed by the Ukraine war and Western sanctions.
The European Union embargo on Russian seaborne crude and price caps, which took effect this month, have so far not pushed up the price of oil around the world, as many analysts feared.
"Russian exports have continued to flow. And that's what the market was panicking about in March," De Haan said.
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