Consumers Catch a Break at the Pump Ahead of the New Year

Illustration by Bankrate / Getty Images

At a moment when prices are rising everywhere, one major household expense is offering relief ahead of the holidays: gasoline.

National retail pump prices recently slipped below $3 per gallon, the lowest level in four years, AAA data shows. Motorists could see gas prices slide by another 15 cents over the next few months, according to the Energy Information Administration’s (EIA) forecast.

Some of the drop is due to cheaper crude oil prices, which has been declining most of the year and trading around $55 a barrel as of mid-December. Gas prices are also typically lower in the winter due to weaker demand and cheaper-to-produce winter blend gasoline, but experts say prices have also been trending down over the past year.

“ When the cost of living and the cost of just about everything else is going up, this is a welcome change for consumers,” OPIS Chief Oil Analyst Denton Cinquegrana said. “I would treat it as a good thing.”

The drop in gas prices couldn’t have come at a better time for U.S. consumers. Many households are trying to stay financially afloat amid a cooling job market, persistent inflation and rising credit card balances heading into the holiday season. This year, 89% of holiday travelers plan to take road trips, according to AAA, making relief at the pump especially meaningful.

How much do a few cents per gallon actually add up to? Bankrate’s analysis of government petroleum data finds that drivers nationwide are expected to spend an estimated $1,634 on gas in 2025. That’s down from $1,739 in 2024, or a savings of more than $105 per motorist. 

Matt McClain, a petroleum analyst at GasBuddy, said  gas prices are now lower in a majority of the states compared to last year, and the new multi-year lows equate to weekly savings of nearly $400 million for drivers nationwide compared to this time last year.

Will gas prices get cheaper in 2026?

Gasoline prices are expected to get even cheaper in the new year. The EIA forecasts a gallon of regular unleaded gas will average out to $3 nationally in 2026, which is about 11 cents from 2025 and 31 cents from 2024.

“ We’re in a good spot for consumers as it comes to oil prices,” Cinquegrana said. “Things look cheap. They look like they’re going to probably stay cheap in in 2026, barring something happening. There’s potential for that [cheaper prices] to carry into 2027 as well.”

The national average for regular gas has stayed below the $3 mark since hitting $2.99 on December 2, according to AAA data. As a record number of travelers prepare to hit the road this month, they’ll pay 12 cents less for a gallon of regular gas than they did last holiday season, McClain said.

“For  the vast majority, it does have a direct and faster impact every time you pull up to the pump,” he said. “Gas is continually falling in the favor of the consumer. You fill up enough times, and it will add up very quickly over the course of several months.”

It will take time for lower gas prices to work their way through shipping costs, airfares and other fuel-dependent transportation expenses, according to McClain.

“Everything you see on a store shelf, everything you order from brands that are out there where you get stuff delivered in a day or two to your home, all of that requires fuel to get it from point A to point B,” McClain said.

How to save at the pump during the holidays

Whether gas is expensive or relatively cheap where you live, there are savvy ways to cut what you pay at the pump – especially ahead of the holidays. Here are five tips to help keep fuel costs in check on your holiday road trips.