Gas prices are making headlines this Christmas season, and the numbers are good news for consumers. With average prices expected to hit $2.79 per gallon by December 25, this trend marks the lowest holiday gas prices since 2020. The last time prices dropped this low was during the COVID pandemic, when gas averaged $2.26 as demand plummeted nationwide. Comparatively, prices last Christmas averaged $2.95, a clear drop that offers significant savings this year—an estimated half a billion dollars during Christmas week alone.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, this seasonal trend is typical. He notes, “Christmas is often when gas prices settle near the lowest levels of the year, and 2025 is no exception.” This year, various factors have combined to keep prices down, including completed refinery maintenance, increased supply, and lower winter demand. “Refinery maintenance has wrapped up, supplies are rising, and winter demand is much lower than in summer,” De Haan explains. He predicts this trend of lower costs could carry into 2026, assuming other conditions remain stable.
The continuous drop in prices has seen averages fall below the $3 mark for the first time in over four years, now sitting at $2.905, down significantly from $3.030 a year ago. However, the savings are not consistent across the country. Drivers in Oklahoma are currently enjoying prices as low as $2.339 per gallon, while those in California face much higher costs at $4.343. In certain areas of Missouri, Colorado, Oklahoma, and Texas, some stations even offer regular unleaded for under $2—a stark contrast to the prices seen in recent years.
The disparity highlights a critical point for consumers: crossing state lines could lead to savings of 20 to 80 cents per gallon, incentivizing many to seek strategic fuel stops during holiday travel. For those budgeting for the season, this insight proves valuable as it allows drivers to maximize their fuel dollars.
Looking back, this decrease in gas prices can be linked to steps taken by the Trump administration. After taking office in January, President Trump initiated a “national energy emergency” designed to drive down gas prices. His “drill, baby, drill” approach included expanding offshore leasing, accelerating pipeline permits, and loosening environmental regulations to enhance domestic production. Still, even with these measures, prices remain above Trump’s long-term goal of under $2 per gallon. Despite now being the lowest since March 2021, there is still work to be done.
This holiday season, families can breathe a little easier at the pump. With prices trending downward, the economic pressures of the past few years seem to be letting up, even if just for a moment. The holiday spirit may be a bit brighter with these cost savings, allowing families to focus more on celebrating rather than worrying about fuel costs.
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