GasBuddy is revealing a major fuel price development this holiday season. Gas prices have hit their lowest level since 2020, delivering substantial savings for holiday travelers nationwide. According to GasBuddy‘s projections, the national average is expected to settle near $2.79 per gallon on Christmas Day, representing the most affordable fuel prices in four years.
🔥 Quick Facts
- National average gas price projected at $2.79 per gallon on December 25, down from $3.00 last year
- Holiday travelers expected to save over $500 million during the holiday week compared to 2024
- This marks the lowest December prices since the end of 2020, a full five-year low
- Global crude oil oversupply and declining crude costs are primary factors driving the decline
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GasBuddy released forecasts showing gas prices settling to levels unseen in nearly a half-decade. On December 22, 2025, the national average sat at $2.86 per gallon, according to the latest data from AAA and GasBuddy. This represents a dramatic shift from December 2024 when drivers paid around $3.00 per gallon.
The cheapest December at the pump in a five-year period means holiday road trips are arriving with an unexpected financial blessing. Earlier in December, the national average briefly dipped below $3.00 per gallon for the first time since prices spiked in 2022.
Holiday Travelers Save Hundreds at the Pump
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The savings being realized by American drivers are substantial. Families planning road trips this holiday season are benefiting from 15.2 cents per gallon lower prices compared to December 2024. For a typical vehicle with a 15-gallon fuel tank, this translates to approximately $2.28 savings per fill-up.
GasBuddy projects that holiday travelers will collectively save over $500 million during the holiday week compared to last year’s prices. This windfall represents the third consecutive year of declining gas prices heading into year-end celebrations. Multiple factors are converging to create these historically low fuel costs.
What’s Driving the Gas Price Decline This Year
Crude oil prices have experienced a dramatic collapse throughout 2025, creating the foundation for falling pump prices. The U.S. benchmark for crude oil fell to $55 per barrel on December 16, the lowest level since February 2021. Global oil supply is vastly outpacing demand, creating sustained downward pressure on fuel costs.
According to energy analysts, OPEC+ made the pivotal decision to return production quotas faster than expected earlier in 2025. Combined with increased U.S. oil production and refinery maintenance completion, the market faces an unprecedented global oversupply situation. Winter driving demand is significantly lower than summer months, further limiting pressure on prices. The Energy Information Administration expects crude oil to average $55 per barrel in 2026, suggesting sustained low pump prices.
| Price Metric | Current (Dec 22) | Projected (Dec 25) |
| National Average | $2.86/gallon | $2.79/gallon |
| Year-to-Date Average | $3.22/gallon | Down from $3.33 in 2024 |
| Comparison vs 2024 | $0.152 cheaper per gallon | $0.21 savings vs 2024 |
| Diesel Prices | $3.59/gallon | Down 19.3 cents since November |
Industry Experts Weigh In on the Gas Price Outlook
Patrick De Haan, head of petroleum analysis at GasBuddy, noted that this seasonal pattern is consistent with historical trends. “Christmas is often when gas prices settle near the lowest levels of the year, and 2025 is no exception,” De Haan stated in recent comments about the fuel market.
“This is the cheapest December at the pump since the end of 2020.”
— AAA Fuel Analysis, Petroleum Data
The consensus from energy experts is that 2026 will continue the trend of lower fuel costs. The Energy Information Administration projects gas prices will average closer to $3.00 per gallon next year, providing continued relief at the pump for American consumers throughout the coming year.
Will These Low Gas Prices Stick Around Into 2026?
The short answer is yes, according to major energy forecasters. GasBuddy estimates fuel prices will stay low through much of 2026 thanks to the ongoing global crude oil oversupply situation. The structural fundamentals supporting low prices remain firmly in place heading into the new year.
Analysts caution that geopolitical disruptions or sudden shifts in OPEC production could alter this outlook. However, absent major supply shocks, drivers should expect to see prices in the $3.00 to $3.20 range on average throughout 2026. This represents a blessing for families dealing with broader cost-of-living pressures and represents the third consecutive year of declining gas prices for American consumers.
Sources
- GasBuddy – Official gas price forecasts and holiday travel projections
- AAA Gas Prices – National average price tracking and historical data
- Energy Information Administration – Crude oil supply analysis and 2026 price forecasts
Patrick Graham is a business and finance journalist translating Wall Street’s complexities into stories that matter to everyday readers. With extensive experience in financial journalism and economic analysis, this expert journalist provides sharp insights on market trends, corporate developments, and the economic forces affecting daily life. His reporting helps readers make sense of the business world’s biggest moves.