The average price for a gallon of unleaded regular gasoline in New York City finally fell below $3 after stubbornly holding above that mark for weeks, AAA Northeast reported Monday.

The average price of $2.999 is a significant milestone with two post pandemic driver surveys conducted by AAA showing that 40% of motorists consider $3 per gallon the pain point for the price of gas.

Four out of 10 drivers said they would have to cut back in other areas of the family budget to pay for gasoline, like not eating out, combining their errands with their commute or delaying a major purchase like an appliance, a AAA Northeast announcement said.

AAA Northeast is a not-for-profit auto club with offices in Rhode Island, Massachusetts, Connecticut, New Jersey, New Hampshire and New York, providing travel, insurance, finance and auto-related services.

The surveys

The surveys were conducted as prices were rising after pandemic lockdowns sent retail prices plummeting and the price of crude oil went negative on April 20, 2020, according to AAA Northeast. Falling prices now may provide some relief for local drivers still struggling with a tough economy, according to economists.

“New York City is a bit of a bastion of lower gasoline prices,” said Robert Sinclair Jr. of AAA Northeast. “Just a little north in White Plains, the average price is $3.15 per gallon. Imagine, heading into the city from the suburbs to find cheaper gasoline.”

New York City joins the rest of the Tristate region, which is already significantly below the three-dollar threshold.

Prices in other states

Here is a look at gas prices elsewhere in the country, as reported by AAA.

New Jersey’s statewide average is $2.81. Long Island’s average price today comes in at $2.86 per gallon. Connecticut averages $2.91.

Traveling in the Bronx, drivers will see some prices are lower than in New Jersey, which just saw a 4 cent per gallon tax increase.

Gasoline prices are at rock bottom in some parts of the country.

The cheapest town in the United States is Des Moines, Iowa, where the average price is $2 per gallon, AAA reported.

The next highest is Casper, Wyoming, at $2.01 per gallon, followed by Amarillo, Texas, at $2.12, Greeley, Colorado, at $2.13. Lubbock, Texas, rounds out the cheapest five metropolitan areas at $2.13 per gallon.

At the opposite end of the market is Lihue (Kauai), Hawaii, which averages $4.95 per gallon. Hilo, Hawaii, is $4.58. In California, San Diego averages $4.46, San Luis Obispo comes in at $4.45 and Los Angeles at $4.42.

Low prices should continue

Lower gasoline prices across the nation are responding to fundamentals that indicate cheaper prices should hold on, at least in the near term, the AAA announcement said.

Oil refineries are operating at their highest rates since mid-August, pumping out nearly 9.5 million barrels of gasoline per day, an additional 300,000 barrels of gasoline per day compared to the prior week. While average daily gasoline demand is the highest this time of year since 2021 at 9.07 million barrels, the over production has lots of gasoline going into storage, known as inventory.

Nationwide, gasoline inventories stand at 225 million barrels, up 5 million barrels from the previous week.