U.S. gasoline prices are set to fall to the lowest level since 2020, thanks to increasing supplies, despite some ongoing refinery maintenance, GasBuddy has predicted. GasBuddy has predicted that U.S. motorists will pay an average of $2.79 per gallon on Christmas Day, down from $2.95 per gallon a year ago. That will mark the cheapest gas since prices averaged $2.26 per gallon in the Christmas of 2020.
“Christmas is often when gas prices settle near the lowest levels of the year, and 2025 is no exception,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Refinery maintenance has wrapped up, supplies are rising, and winter demand is much lower than in summer — all of which help keep a lid on prices. Provided there are no surprises; holiday travelers should see pump prices that come in a bit lower than last Christmas. We’re also seeing encouraging early trends as we prepare to release our 2026 Fuel Outlook in January, with signs that lower prices could continue into next year,” he added.
The national average price of gasoline has continued on a downward trend after dropping below $3 a gallon two weeks ago, sinking to their lowest level since 2021. The average U.S. gas price is now $2.905 per gallon, down from $3.030 a year ago. However, prices vary widely by state, with motorists in Oklahoma paying $2.339 per gallon compared to $4.343 in California. Diesel prices have seen an even steeper decline, with the national average price of diesel currently standing at $3.642 per gallon, down from $3.765 a month ago.
Crude oil prices are currently falling due to a significant global oversupply, weaker-than-expected demand growth, and easing of geopolitical risk premiums. Brent crude for February delivery was trading at $59.88 per barrel at 13.15 pm ET on Wednesday afternoon, down from $62.44 a week ago, while WTI crude for January delivery fell to $56.12/barrel from $58.74 a week ago.
By Alex Kimani for Oilprice.com
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