Gas Prices Plummet to Four-Year Lows, Saving Drivers $500M Over Christmas Week

National average hits $2.79—down from $3.00 last year—as refinery output and OPEC production boost supply.

By yourNEWS Media Newsroom

Gasoline prices are set to drop further by Christmas, with the national average expected to hit $2.79 per gallon—21 cents lower than last year—saving American drivers more than $500 million during the holiday week, according to GasBuddy.

The decline marks the third consecutive year of holiday price relief, continuing a downward trend after mid-decade peaks. Analysts credit rising gasoline supplies, completed refinery maintenance, and increased OPEC oil production for pushing crude prices to multi-year lows.

“Christmas is often when gas prices settle near the lowest levels of the year, and 2025 is no exception,” said Patrick De Haan, GasBuddy’s head of petroleum analysis. “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.”

A Boost for Holiday Travelers

With millions of Americans hitting the road, the lower winter demand is keeping prices in check. AAA reported the national average fell to $2.94 per gallon—the lowest in four years—with prices below $3 in 36 states, under $2.75 in 20 states, and below $2.50 in five states. Some stations in at least four states are even selling gas for under $2 per gallon.

The White House attributed the drop to “positive changes in economic conditions” under President Donald Trump’s second term, noting that Americans are now spending the smallest share of disposable income on gasoline in nearly 20 years.

What’s Driving the Decline?

• Refinery maintenance completion: No major disruptions expected.
• Higher gasoline supplies: Stockpiles grew ahead of the holidays.
• OPEC production increases: Crude oil prices remain depressed.
• Weak winter demand: Far below summer levels.

De Haan added that barring unexpected disruptions, prices could keep falling into 2026.

“This is the kind of relief families need during the holidays,” a White House spokesperson said earlier this month, highlighting that gas prices have hit their lowest point in 1,682 days.

For drivers, the savings couldn’t come at a better time—just as holiday travel ramps up and household budgets stretch thin. The trend also signals potential long-term relief if supply and demand conditions remain stable.