In line with AAA, as vacation journey begins, the gallon is at its lowest stage in four years
Customers at the GasWay Xpress Mart at 1120 Erie Blvd. Pump Gas on Wednesday, December 3, 2025, in Schenectady, NY
Lori Van Buren | Albany Times Union | Hearst Newspapers | Getty Images
Holiday travelers are feeling some relief at the pump this year.
The average price of unleaded gasoline in the U.S. was below $3 a gallon for most of the month – the lowest level since 2021, according to AAA. The association said it will be the cheapest December for drivers to fill up their tanks since the pandemic year of 2020.
AAA data shows fuel prices fell about 7% from a month ago and fell about 43% from mid-2022 highs of about $5 a gallon, which followed runaway inflation in the wake of the pandemic.
The latest price drop comes as AAA predicts a record forecast of more than 122 million Americans will travel at least 50 miles from home in the 13 days between December 20 and January 1. AAA found that nearly nine out of 10 people who traveled during that period – or nearly 110 million – were likely to travel by car.
The drop in pump prices could help mitigate the impact of persistent inflation elsewhere during the holiday season.
According to CNBC’s All-America Economic Survey, just over 40% of respondents said they plan to spend less during the holidays this year, an increase of 6 percentage points from last year. Of those who pinch pennies, 46% blame the high cost of goods.
The national average hides wide regional differences, as both Hawaii and California recorded average gas prices above $4 on Monday. In Oklahoma, however, a gallon cost just under $2.30.
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