Breaking News
More () »

How low could Mid-South gas prices go in time for the holidays?

All Mid-South states are now under $3 a gallon on average. At many stations in Memphis, gas can be found for around $2.75 a gallon.

MEMPHIS, Tenn. — It's now cheaper to drive than it was in February before the war in Ukraine sparked record prices in June. 

Some economists believe gas prices could fall to $2.50 a gallon by late spring or early summer 2023.

"When I'm done at the pump, very exciting," Tommy Cole said. "It can go down more and more, it's going to make me more excited."

For Cole and others, filling up the gas tank these days is a reason for optimism - not dread.

"Below $3, everything is great," Larry Lyles said. 

"I probably save at least a hundred bucks, maybe more," Cole added.

Those savings are real, as Mid-South economists said less demand and more supply is a big reason why there's a big drop-off in gas prices - about 30 cents a gallon on average - in recent weeks.

Year-to-year inflation is also slowing down after surging in the spring and summer.

"It's perfect, perfect news," Dr. John Gnuschke, a Memphis economist, said. "It's helping everybody in their wallets because obviously, the price of gas has gone down, the price of groceries is going down."

That's pumping in more money for families to spend, just in time for the busiest shopping weeks of the year. 

"I have two grandchildren I get to spoil with the extra money," Lyles said.

"It helps out a whole lot because I have a Iot of nieces and nephews so I have to get them gifts and everything. With holiday shopping, it will definitely help out with gas prices going lower and lower," Dr. Gnuschke added.

Gas prices in Memphis on average are one one-third since about six months ago, when the $4.64 a gallon average set a record high June 14.

If you fill up with the size of most car tanks, you'll be saving between $20 and $25 compared to that June peak.

Before You Leave, Check This Out