Gasoline prices are continuing to decline nationwide as the holiday travel season gets underway, giving drivers relief at the pump even as road traffic increases.
The national average price for a gallon of regular gasoline fell more than four cents over the past week to $2.89, the lowest December average since late 2020, according to AAA. Prices are down from $2.94 one week ago, $3.08 one month ago, and $3.03 at this time last year.
Overall, gasoline prices in 2025 have remained relatively stable, with few sharp swings compared to recent years. Analysts attribute the current decline to a combination of low crude oil prices, strong fuel supplies and seasonal demand patterns.
Refinery maintenance has largely wrapped up for the year, allowing gasoline inventories to rebuild. At the same time, winter driving demand is significantly lower than during the summer months, helping keep prices from rising despite increased holiday travel.
Fuel-tracking service GasBuddy expects prices to ease further heading into Christmas, a period that historically brings some of the lowest gasoline prices of the year. National averages are projected to fall below current levels as supply continues to outpace demand.
Gas prices today remain well below the all-time high reached in June 2022, when the national average climbed to $5.02 per gallon. Compared to those peak levels, current prices represent a substantial pullback for consumers.
The White House has highlighted falling fuel prices as a positive economic indicator, noting that averages have dropped below $3 per gallon in many states. President Donald Trump has also pointed to declining energy costs as evidence of broader economic improvement.
Industry analysts caution, however, that gasoline prices are primarily driven by market forces, including global oil production, refinery output and seasonal demand, rather than political policy alone. With those factors remaining favorable, drivers are expected to continue seeing relatively low prices through the remainder of the holiday season.
