Gasoline prices in the United States are expected to drop to their lowest levels since 2020, according to a prediction by GasBuddy. The average price of gas on Christmas Day is projected to be $2.79 per gallon, down from $2.95 per gallon a year ago. This will be the cheapest gas prices have been since averaging $2.26 per gallon during the Christmas season of 2020.
Patrick De Haan, head of petroleum analysis at GasBuddy, noted that Christmas is typically when gas prices reach their lowest levels of the year, and 2025 is no exception. He attributed the decrease in prices to the completion of refinery maintenance, an increase in supplies, and lower winter demand compared to the summer months. De Haan also expressed optimism about the upcoming year, hinting at the possibility of prices continuing to stay low in 2026.
The national average price of gasoline has been on a downward trend, currently standing at $2.905 per gallon, the lowest level since 2021. However, prices vary significantly by state, with Oklahoma residents paying $2.339 per gallon while Californians face prices as high as $4.343 per gallon. Diesel prices have also seen a notable decrease, with the national average price now at $3.642 per gallon, down from $3.765 a month ago.
The drop in gasoline prices can be attributed to falling crude oil prices, driven by a global oversupply, weaker demand growth, and reduced geopolitical risk premiums. Brent crude for February delivery is currently trading at $59.88 per barrel, down from $62.44 a week ago, while WTI crude for January delivery has fallen to $56.12 per barrel from $58.74 a week ago.
In conclusion, the decrease in gasoline prices is welcome news for U.S. motorists, offering some relief at the pump during the holiday season. With prices expected to remain low into the new year, consumers can look forward to continued savings on fuel costs.
