Detroit, Michigan, December 24, 2025

U.S. drivers are benefiting from the lowest gas prices in years this holiday season, with the national average for unleaded gasoline dropping below $3 per gallon. By late December, prices averaged around $2.85 per gallon, the lowest levels seen since 2020. While state averages vary widely, factors such as stable crude oil prices and increased refinery output contribute to this decline, offering consumers relief amidst rising costs in other areas. Expectations suggest that gas prices will remain mild as the holiday season progresses.

US Drivers Enjoy Lower Gas Prices This Holiday Season

Detroit, Michigan – U.S. drivers are experiencing the lowest gas prices in years this holiday season, with the national average for unleaded gasoline dropping below $3 per gallon in December. According to data, the national average fell to approximately $2.85 per gallon on December 22, marking the lowest December prices since 2020.

National and Statewide Price Variations

The national average for unleaded gasoline has remained below $3 per gallon since December 2, reaching its lowest point of about $2.85 per gallon on December 22. This figure has since increased slightly to around $2.86 per gallon. Statewide averages vary, with Hawaii having the highest average at approximately $4.44 per gallon, followed by California at $4.30 and Washington at $3.92. Conversely, Oklahoma has the lowest average at about $2.30 per gallon, with Arkansas and Iowa close behind at nearly $2.42 per gallon.

Factors Contributing to Lower Gas Prices

The decline in gas prices is attributed to a combination of factors, including stable crude oil prices and strong gasoline supply. West Texas Intermediate crude oil has remained under $60 per barrel for most of December, contributing to the decrease in pump prices. Additionally, U.S. refineries have completed maintenance and increased output, further bolstering gasoline supply.

Impact on Consumers

The reduction in gas prices provides some relief to consumers amid rising costs in other areas, such as food and holiday items. However, concerns persist due to inflation remaining above the Federal Reserve’s 2% target and economic uncertainty following a recent 43-day federal shutdown. Consumer confidence has also fallen to its lowest level since April.

Outlook

As the holiday season progresses, drivers can expect to see continued mild gas prices, barring any significant changes in crude oil markets or supply disruptions. The current trend offers a welcome respite for travelers during the festive period.