American drivers are seeing meaningful relief at the gas pump this holiday season, with prices falling to levels not seen in December for four years. As tens of millions prepare to travel for Christmas and New Year’s, fuel costs are easing at a critical moment.
According to data from AAA, the national average price for regular unleaded gasoline declined steadily throughout December. Prices dropped more than four cents during the first half of the month, settling near $2.89 per gallon, and continued sliding by another five cents in the days that followed.
As of December 24, the national average stands at approximately $2.84 per gallon, down from $2.94 at the beginning of the month and $3.08 one month earlier. Compared with this time last year, when drivers paid an average of $3.03 per gallon, today’s prices reflect notable year-over-year savings.
AAA reports that this marks the lowest December gasoline price nationwide since 2020, offering welcome relief during one of the busiest travel periods of the year.
The timing of the price decline is significant. AAA estimates that more than 122 million Americans will travel at least 50 miles from home between December 20 and January 1. Of those travelers, nearly 110 million are expected to drive, making lower fuel costs especially impactful for households planning long road trips.
Despite the national downward trend, gas prices continue to vary widely by state. Some of the highest average prices are found in Hawaii, where gas averages around $4.43 per gallon, followed by California at $4.33 and Washington at $3.96. Alaska and Oregon also remain among the more expensive markets.
On the opposite end of the spectrum, several states in the Midwest and South are seeing particularly low prices. Oklahoma currently averages about $2.34 per gallon, while Arkansas, Iowa, Colorado, Wisconsin, and Texas are all hovering near or below $2.50 per gallon.
Electric vehicle drivers have not experienced the same degree of fluctuation. AAA reports that the national average cost for public EV charging has remained steady at approximately 38 cents per kilowatt-hour. Charging rates are highest in states like West Virginia and lowest in Kansas, reflecting regional differences similar to gasoline pricing.
Behind the price decline is a relatively stable oil market. Gasoline demand has increased as holiday travel ramps up, rising from roughly 8.45 million barrels per day to just over 9 million barrels per day in recent weeks. At the same time, domestic gasoline supplies have grown, with inventories climbing above 225 million barrels and production averaging around 9.6 million barrels per day.
The U.S. Energy Information Administration’s December Short-Term Energy Outlook points to stability rather than scarcity in global oil markets. According to the agency, surplus oil production capacity — particularly among major exporting nations — is higher than previously estimated, reducing the likelihood of sudden price spikes.
That buffer of excess capacity helps absorb demand surges or supply disruptions, keeping crude oil prices in check and contributing to lower gasoline prices for consumers.
Energy analysts note that when spare production capacity is tight, even minor disruptions can send prices soaring. The current environment, however, appears better positioned to maintain price stability through the end of the year.
For drivers, the result is tangible savings at the pump during a time when travel expenses often peak. While prices can still fluctuate in the coming weeks, experts say the overall outlook remains favorable compared to recent years.
AAA encourages travelers to plan ahead by monitoring fuel prices along their routes and using tools such as its Gas Cost Calculator or TripTik travel planner to estimate expenses.
As holiday traffic fills highways across the country, the lowest December gas prices since 2020 are offering Americans a rare combination: record travel volumes paired with lower fuel costs — a welcome break during a busy and costly season.
Emily Johnson is a critically acclaimed essayist and novelist known for her thought-provoking works centered on feminism, women’s rights, and modern relationships. Born and raised in Portland, Oregon, Emily grew up with a deep love of books, often spending her afternoons at her local library. She went on to study literature and gender studies at UCLA, where she became deeply involved in activism and began publishing essays in campus journals. Her debut essay collection, Voices Unbound, struck a chord with readers nationwide for its fearless exploration of gender dynamics, identity, and the challenges faced by women in contemporary society. Emily later transitioned into fiction, writing novels that balance compelling storytelling with social commentary. Her protagonists are often strong, multidimensional women navigating love, ambition, and the struggles of everyday life, making her a favorite among readers who crave authentic, relatable narratives. Critics praise her ability to merge personal intimacy with universal themes. Off the page, Emily is an advocate for women in publishing, leading workshops that encourage young female writers to embrace their voices. She lives in Seattle with her partner and two rescue cats, where she continues to write, teach, and inspire a new generation of storytellers.
