Call it a Christmas miracle or maybe just the effect of higher demand, higher supply and a free market, but gas prices across the U.S. are down. The national average fell more than 5 cents, averaging $2.86 per gallon this week, which is down 26 cents from a month ago and 21 cents from a year ago.
Lower prices will save motorists over half a billion dollars during the Christmas week compared to last year, gasbuddy.com reported. In metro areas like Toledo, Minneapolis and Detroit, average gasoline prices fell nearly 40 cents in the last week, according to a GasBuddy analysis. And virtually every state is at a 2025 low.
Check your area's prices HERE. And if you're hitting the road, fill up at the cheapest points on your route.
Prices are highest in California, which is at $4.30 on average per gallon; Lowest in Texas at $2.50 per gallon, and in the middle in most of the Midwest. Minnesota is at $2.68, Illinois, $2.95, and Philadelphia, $3.01.
Why are prices trending downward while the cost of everything else seems to be going up? It's a simple matter of supply and demand.
“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."
De Haan added there are "encouraging early trends" for 2026, too.
According to new data from the Energy Information Administration, gasoline demand increased from 8.45 million b/d to 9.07 million. Total domestic gasoline supply increased from 220.8 million barrels to 225.6 million. Gasoline production increased last week, averaging 9.6 million barrels per day.
And the drop couldn't come at a better time as AAA is forecasting a record number of Americans will travel over the 13-day year-end holiday period beginning December 20 and ending January 1.
122.4 million Americans are expected to travel at least 50 miles between Dec 20 - Jan 1, a 2.2% increase over last year, and polls show that trend is largely driven by cheaper gas prices.
Most travelers -- 90% -- will drive, analysis shows, with small SUVs popular rentals. But air travel is also hitting record numbers for the holidays. Eight million Americans are expected to fly over the next couple of weeks.