U.S. Gas Prices Fall to Lowest December Level Since 2020

U.S. gasoline prices are falling to their lowest levels in four years, offering relief to drivers during the peak holiday travel season. The national average price for regular gasoline declined by more than four cents over the past week, settling at $2.89 per gallon.

This marks the cheapest December price at the pump since the end of 2020. Despite increased travel and seasonal demand, fuel costs have remained subdued as crude oil prices stay relatively low and gasoline supply remains ample.

Throughout 2025, gasoline prices have shown unusual stability compared with prior years. The national average has moved within a relatively narrow range, avoiding the sharp spikes that characterized earlier periods of volatility.

Current price comparisons highlight the broader downward trend:

• Today: $2.896
• One week ago: $2.940
• One month ago: $3.077
• One year ago: $3.034

Supply, Demand, and Oil Market Conditions

Recent data from federal energy agencies show that gasoline demand increased during the past week, rising from 8.45 million barrels per day to 9.07 million. At the same time, total domestic gasoline supply expanded from 220.8 million barrels to 225.6 million barrels.

Gasoline production also increased, averaging 9.6 million barrels per day. The combination of rising output and healthy inventories has helped offset stronger seasonal consumption.

Oil market conditions remain supportive. At the close of the latest formal trading session, West Texas Intermediate crude settled near $55.94 per barrel. U.S. crude inventories declined modestly by 1.3 million barrels but remain about 4% below the five-year average for this time of year.

State-Level Price Differences

Price disparities across states remain significant. The most expensive gasoline markets currently include Hawaii, California, Washington, Alaska, and Oregon, where prices remain well above the national average.

At the lower end of the spectrum, states such as Oklahoma, Arkansas, Iowa, Colorado, and Wisconsin continue to offer some of the lowest gasoline prices in the country.

Electric vehicle charging costs have remained steady as well. The national average price at public charging stations held at 38 cents per kilowatt hour over the past week, with notable variation across states.

 Fuel prices remain a closely watched economic indicator in the United States, particularly as households assess inflation pressures and travel costs during the holiday season.