Holiday drivers see cheapest December gas prices since 2020 as national average falls to $2.89
Drivers heading out for the holidays are seeing the cheapest December gas prices in five years, with the national average falling to $2.89 a gallon as strong fuel supplies offset increased seasonal demand.
The average price dropped more than 4 cents from last week and is down nearly 15 cents from a month ago, according to national fuel data released Thursday. Gas prices are also lower than a year ago, when the national average stood at just over $3.03.
Analysts say low crude oil prices and ample gasoline supplies have helped keep prices steady throughout 2025, a year marked by relatively few fluctuations and no sharp spikes at the pump.
According to the Energy Information Administration, gasoline demand rose last week from 8.45 million barrels per day to 9.07 million barrels per day as holiday travel increased. At the same time, domestic gasoline supplies climbed from 220.8 million barrels to 225.6 million, while production averaged 9.6 million barrels per day.
In oil markets, West Texas Intermediate crude rose 67 cents on Wednesday to settle at $55.94 a barrel. The EIA reported that U.S. crude oil inventories declined by 1.3 million barrels last week to 424.4 million barrels, about 4% below the five-year average for this time of year.
Electric vehicle charging costs remained unchanged over the past week, with the national average holding steady at 38 cents per kilowatt hour at public charging stations.
Regionally, Hawaii had the most expensive gasoline in the nation at $4.43 a gallon, followed by California at $4.33 and Washington state at $3.96. Other high-cost markets included Alaska, Oregon, Nevada and Washington, D.C.
Oklahoma had the least expensive gas at $2.34 a gallon, followed by Arkansas at $2.46 and Iowa at $2.47. Several other Midwestern and Southern states reported averages near $2.50.
For electric vehicle drivers, West Virginia reported the highest average public charging price at 52 cents per kilowatt hour, while Kansas had the lowest at 26 cents. Prices were also comparatively low in Wyoming, Missouri and Nebraska.
AAA said drivers can check current gas prices and electric vehicle charging costs along their routes using its TripTik Travel planner.
