Gas prices plunge just in time for record-breaking Thanksgiving crowds

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Gas prices are plunging as record crowds hit the skies and the roads for Thanksgiving. According to AAA, the national average for the price of a gallon of gas is now down to $3.28. The price in August hit $3.87 a gallon.

"The most common price for an American consumer is at $2.90," Amos Hochstein, the senior advisor to the president for energy, said. Hochstein spoke to TPG on inflation and the impact of falling gas prices on travel this week.

He told me the President and his administration are "glad to see that ahead of the holiday season, gas prices are significantly lower." He pointed out gas prices are the lowest they've been since Thanksgiving of 2020, "That's the trend we were hoping for."

The Biden administration thinks that's part of what is driving a record number of Americans to hit the road for Thanksgiving. In fact, according to AAA, 49.1 million Americans will drive during Thanksgiving week.

"Some people will make their decision based on the price of travel," Hochstein said. "It's a little bit of an extra break for the American family. This may help them make the decision to travel, but this is going to give them a little extra savings."

He pointed out the falling gas prices had other benefits, too, including lowering the prices of consumer goods and shipping, "not just on pumping gas in cars."

Holiday air travel

It's not just roads that will be jammed.

The Transportation Security Administration expects to screen 2.9 million people on Nov. 26 at U.S. airports. That would be the highest one-day total ever recorded. On Nov. 21, the TSA screened more than 2.6 million people — topping pre-pandemic 2019 numbers by more than 200,000 people.

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So far, the massive delays and cancellations we saw during Christmas last year have not materialized despite a major storm moving through the busy Northeast. In fact, FlightAware suggests there are surprisingly few delays and cancellations, with just 40 flights into or out of the U.S. being canceled early Wednesday morning.

In an interview earlier this month, U.S. Secretary of Transportation Pete Buttigieg told me things were much improved and that he was pretty confident that the airlines are in a better position heading into the holidays. He said the administration's action on passenger protection and flyer rights "has clearly made a big difference in what you can expect when you do experience a disruption."

Related: Airlines pushed again by DOT to be better on delays and cancellations

Falling oil prices are likely to reverberate

The White House said it's in constant contact with players that touch every aspect of fuel prices as well, "from oil producers to refiners to the airline CEOs." Hochstein said that he expects jet fuel prices to continue to fall and that he and the president want to ensure that those falling prices are reflected in the prices Americans pay for plane tickets.

"What we are trying to do is encourage everyone to bring prices down," Hochstein said. He added that the price of fuel oil was having a big impact on the airlines, but as those impacts ease, the White House wants to see it show up for consumers — not just in airline tickets but in the price of everything.

He used the analogy of "rockets and feathers," that when oil prices go up, prices go up like a rocket, but when the price of oil comes down, prices fall like a feather. "It's always a curious process ... the president has made clear that that is not OK," he said.

I asked the White House if they expected falling fuel prices to significantly impact inflation. Hochstein said for consumers, the price of gasoline has been a very important indicator.

"It affects every American," he shared. The White House said consumers are not only seeing lower prices when booking tickets for the holiday since jet fuel prices are down; they are also seeing lower prices on goods because diesel prices are down. He pointed out that means truck deliveries are cheaper, so food and consumer goods prices can also come down. "It is a good news story for every American family and every American consumer," he said.

How to further reduce the cost of gas

TPG has a ton of stories on saving money at the pump. A few of our favorites include signing up for gas station rewards and third-party loyalty programs. Another popular program is Fuel Rewards, a loyalty program for Shell gas stations for up to 30 cents off a gallon.

Related: How to use GasBuddy to get ahead of fuel price surges

We like Pay with GasBuddy, which also offers cash savings on gas refills.

Related: Top tips for how to save on gas

Don't sleep on grocery store chains. Walmart, Costco, Kroger and other large retailers have programs that can get you discounted gasoline.

In addition, credit cards can also get you big gas savings. We have a complete guide on the best credit cards for gas.

Sometimes your credit card will also offer gas savings in the form of cash-back or bonus points — on top of the extra points you'd earn for using that card to buy gas. For example, some American Express cards are eligible for an additional 2 Membership Rewards® points per dollar spent on qualifying purchases at US Phillips 66®, 76® and Conoco® locations or through the Fuel Forward™ app right now. (Enrollment is limited. Offer expires Dec. 31, 2023.)

Related: Saving on gas: Everything you need to know about fuel loyalty programs

Finally, if you really don't want to spend money on gas, consider going electric. Right now, the federal government is offering up to $7,500 in tax incentives for new cars and up to $4,000 for used cars. If you are renting, consider choosing an electric vehicle. I've found that car rental companies often have steep discounts if you choose an electric car when booking.

Related: The ultimate guide to road-tripping with an electric car

Related reading:

• When is the best time to book flights for the cheapest airfare?
• The best airline credit cards
• What exactly are airline miles, anyway?
• 6 real-life strategies you can use when your flight is canceled or delayed
• Maximize your airfare: The best credit cards for booking flights
• The best credit cards to reach elite status