This holiday season, many American drivers are enjoying lower gas prices.
According to data from the AAA automobile club, December was the cheapest month this year in terms of prices at the pump. The national average for unleaded gasoline has remained below $3 since Dec. 2, falling Monday to its lowest level of about $2.85 per gallon.
That figure has risen slightly since then, closing in on $2.86 per gallon on Tuesday — but overall, consumers hitting the road ahead of the Christmas holiday will likely continue to see soft prices.
As always, some states have cheaper averages than others, due to factors ranging from nearby refinery supplies to local fuel needs. Hawaii had the highest average of about $4.44 per gallon Tuesday, per AAA, followed by $4.30 in California and $3.92 in Washington. Meanwhile, Oklahoma had the lowest average, at around $2.30 per gallon, followed by nearly $2.42 in Arkansas and Iowa.
Yet nationally, unleaded gasoline is down more than 18 cents from the same time last year, and 21 cents from a month ago. So far, AAA says the prices seen this month mark the cheapest December for gas prices since 2020, when the COVID-19 pandemic shook the economy.
The travel organization notes that this month’s lowest prices arrive while supply remains strong. Crude oil, the main ingredient in gasoline, also remained at a relatively moderate level – with West Texas Intermediate remaining below $60 a barrel for most of December.
The relief at the pump is welcome for consumers who are feeling higher prices in other areas of their budget – as concerns about the cost of products from groceries to Christmas gifts rise amid continued inflation and tariffs imposed by U.S. President Donald Trump on foreign imports.
Government data actually showed that consumer prices calmed in November, rising just 2.7% from a year earlier. But year-over-year inflation remains well above the Federal Reserve’s 2% target — and economists were quick to warn that last month’s numbers were suspect because of delays and possible distortions from the 43-day federal shutdown.
Most Americans continued to express anger and frustration over the high cost of living – as well as an uncertain job market. On Tuesday, the Conference Board said its consumer confidence index fell in December to its lowest level since April.
This story was originally featured on Fortune.com
