DALLAS, TX – GasBuddy, a PDI company, has released its 2025 Fuel Price Outlook, projecting a continued decline in gasoline and diesel prices for the third consecutive year. The report forecasts significant savings for American consumers and businesses, with total spending on gasoline expected to drop by $12 billion compared to 2024.
The projected yearly national average price of gasoline is set to fall to $3.22 per gallon, down from $3.33 in 2024 and well below the record highs seen in 2022. Total spending on gasoline in 2025 is anticipated to reach $410.8 billion, an 8% decrease from 2024’s estimated $423.1 billion.
Key Highlights from the 2025 Outlook
- Lowest Prices in December: The national average is expected to reach its lowest point of the year in December, averaging $2.89 per gallon.
- Springtime Spike: Prices could peak in April, with a monthly average of $3.53 per gallon and a daily high of up to $3.67 per gallon, driven by seasonal demand and the transition to summer-grade gasoline.
- Regional Variations: Most U.S. cities are expected to see peak gas prices around $4 per gallon, but West Coast cities like Los Angeles and San Francisco could experience prices in the mid-$5 per gallon range, due to high taxes and state-specific regulations.
- Diesel Prices: The yearly national average for diesel is forecast to drop to $3.48 per gallon, benefiting industries like freight and agriculture.
Opportunities and Risks
“While declining fuel prices in 2025 will provide welcome relief to American drivers and businesses, emerging risks could lead to increased volatility,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
GasBuddy identified potential risks, including:
- Geopolitical tensions that could disrupt global supply chains.
- Weather-related disruptions, such as hurricanes impacting production and refining.
- Policy shifts under the new administration that may influence energy markets.
Despite these uncertainties, expanding global refining capacity and stable demand are expected to keep prices lower for much of the year.
Impact on Consumers and Businesses
Lower gas prices in 2025 are anticipated to ease financial pressures on consumers and businesses alike. The reduction in diesel prices will particularly benefit freight and agriculture sectors, offering relief from recent cost increases.
Looking Ahead
GasBuddy’s 2025 Fuel Price Outlook provides insights for consumers, businesses, and policymakers navigating a shifting energy landscape. As global markets respond to changing geopolitical and economic conditions, drivers can expect some volatility but overall relief at the pump.
For a detailed breakdown of 2025 gas and diesel price forecasts by month and region, visit GasBuddy’s website or follow their blog and social media pages.