DALLAS, TX – Good news for holiday travelers: gas prices this Christmas are expected to be the lowest since 2020, with a national average of $2.95 per gallon, according to GasBuddy, a leading fuel savings platform. This comes as a welcome relief to motorists, marking a return to more typical pricing after years of elevated costs.
The decrease in fuel prices is attributed to several factors, including the Federal Reserve’s efforts to curb inflation through higher interest rates, a weakened Chinese economy reducing global oil demand, and the natural stabilization of markets over time.
“This holiday season is shaping up to be a gift for American drivers, with gas prices presenting a stark contrast to the budget-breaking levels we’ve seen in recent years and a return to what feels like normal for many Americans filling their tanks,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “After waiting an exhausting two years for imbalances brought on by COVID-19 and Russia’s war on Ukraine to settle down, we’re finally getting back to normal.”
Holiday Gas Price Breakdown
Travelers across the U.S. will notice significant variations in gas prices depending on their location. The states with the lowest average prices include:
- Oklahoma: $2.46 per gallon
- Texas: $2.53 per gallon
- Mississippi: $2.55 per gallon
- Arkansas: $2.54 per gallon
- Tennessee: $2.62 per gallon
Meanwhile, drivers in states like Hawaii ($4.58/gal), California ($4.31/gal), and Washington ($3.93/gal) will face the highest costs at the pump.
Tips for Holiday Travelers
GasBuddy encourages travelers to use its free app to find the cheapest gas prices, especially when crossing state lines where fuel taxes can significantly affect costs. “Whether you’re driving over the river and through the woods to grandmother’s house or embarking on a longer holiday road trip, your wallet will feel a bit heavier,” added De Haan.
GasBuddy’s 2025 Fuel Outlook, set to release later this month, will offer insights into the year ahead, helping consumers and retailers prepare for potential market trends.
A Return to Stability
After years of economic volatility driven by COVID-19 and geopolitical tensions, this Christmas marks a turning point for fuel costs. “This holiday is a reprieve from the pain at the pump that defined much of the last two years,” said De Haan. “The gift of lower gas prices is one that all holiday travelers can appreciate.”
With gas prices stabilizing and forecasted to remain favorable in early 2025, American drivers can look forward to more affordable road trips in the year ahead.