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While fears about inflation and tariffs have been driving the economic headlines
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there is a bit of good news when it comes to pain at the pump. Americans are spending less of their disposable income on gasoline
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than any time in the past two decades, except during the lockdowns of the COVID-19 pandemic
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The U.S. Energy Information Administration expects drivers to spend less than 2 percent
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of their personal disposable income on gasoline by the end of 2025
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The main drivers, so to speak, are cheaper gas prices as well as low oil prices
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The EIA projects the average price of a gallon of regular unleaded to land at $3.10 for the year and to keep falling to $2.90 a gallon in 2026
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The average in 2024 was $3.30. AAA says the average price of regular unleaded is $3.18 nationally, down $0.06 from a year ago
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Some of the lowest prices are in Texas, Missouri, and North Carolina, while drivers out west in California, Oregon, and Washington State are paying the highest prices
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The EIA also says crude oil prices will fall from $68 a barrel in August
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to about $59 a barrel in the fourth quarter, and go even lower in early 2026 as OPEC continues to ramp up production
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The bottom line is the price at the pump is falling and Americans are saving money
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