National gas prices are at their cheapest levels in almost five years, beginning 2026 at an average of 23 cents less than a year earlier under then-President Joe Biden.

The national average price for a gallon of regular gasoline fell again on New Year’s Day to $2.833, extending a steady slide that has pushed fuel costs to their lowest levels since March 2021, according to AAA data.

The average was slightly lower than the final day of 2025, when regular gas stood at $2.839, and it remains well below the $3 threshold that dominated much of the Biden era.

AAA data show the New Year's Day price was also cheaper than a week ago ($2.847) and a month ago ($3.001), underscoring a rapid decline that picked up momentum in the fall.

After hovering around $3 per gallon for weeks, prices began falling sharply in October.

On Oct. 2, the national average was $3.16. By the end of the month it dropped to $3.04, and by Dec. 2 it slipped below $3 for the first time since 2021.

During the final week of December, prices cracked the $2.90 mark and continued drifting downward through Christmas and into the new year.

AAA on Monday called the drop "welcome relief," noting that the national average fell to about $2.82 — the cheapest December since 2020 — even as a record number of holiday travelers took to the roads.

The group pointed to low crude oil prices and steady gasoline supplies, saying drivers are entering 2026 with more predictable and budget-friendly travel conditions.

December became the cheapest month for gas prices this year, with national averages staying below $3 since Dec. 2 and bottoming out around $2.85 earlier in the week.

Crude oil, the main ingredient in gasoline, remained relatively mild throughout December, with West Texas Intermediate trading below $60 per barrel for most of the month.

The Washington Examiner reported that 40 states now have average gas prices below $3 per gallon, including 10 states under $2.50 and seven under $2.45.

Oklahoma leads the nation at $2.253 per gallon, followed by Iowa ($2.37), Colorado ($2.376), Arkansas ($2.41), and Texas ($2.437).

Meanwhile, high-tax, heavily regulated blue states continue to stand out for expensive fuel. Hawaii has the highest average at $4.415 per gallon, followed by California at $4.266 — the only two states still above $4.

Washington state is next at $3.857, with Alaska at $3.55 and Oregon at $3.424.

Of the 11 jurisdictions still above $3 per gallon, the Examiner noted that 10 are states plus Washington, D.C., and most are led by Democrats.

For many Americans squeezed by inflation and the high cost of living, lower gas prices offer a bit of good news and a reminder that energy policy matters at the kitchen-table level, especially heading into a new year.

The Associated Press contributed to this report.