What’s New
The national average price for a gallon of gas has dipped to $3.04 as of December 23, marking one of the lowest levels during the holiday season since the COVID-19 pandemic, according to new analysis from the American Automobile Association (AAA).
Today’s national average for a gallon of gas is two cents less than a month ago and four cents less than a year ago, the organization’s figures show.
Newsweek reached out to AAA for comment via email on Monday morning.
Why It Matters
This year’s dip in gas prices is a welcome change for Americans, particularly during a season marked by heightened travel. AAA forecasts that 119 million Americans will travel during the holidays, 107 million of whom will drive. For families, lower gas prices mean reduced costs during a time of typically high expenditures.
Additionally, the current trends underscore broader shifts in the oil and gas industry, including stabilized production and moderated crude oil costs following recent geopolitical tensions.
What To Know
The current gas price trends are influenced by a mix of domestic and global factors. According to AAA, the national average never fell below $3 in 2023 but hovered close to that mark. Prices dropped to $3.04 in December after a steady decrease since early fall.
Andrew Gross, a spokesperson for AAA, told Newsweek that the dip in prices follows a seasonal pattern, with prices typically falling in the autumn and early winter and rising again as spring approaches.
“It is typical for prices to bottom out around the holidays, as demand is low with shorter days and colder temperatures. Also, the cost of oil, which accounts for 55 percent of what consumers pay at the pump, is relatively low—under $70 per barrel,” he said.
GasBuddy, an app that tracks gas prices across the country, supported AAA’s findings, reporting that the national average is down 2.6 cents from a month ago. It also indicates that gas prices in more than 30 states are below $3, providing significant relief for millions of holiday travelers.
However, the national average price of diesel has increased by 0.6 cents in the last week and now stands at $3.478 per gallon, it reported.
The Energy Information Administration (EIA) noted that gasoline inventories rose by 2.3 million barrels last week, while estimated gasoline consumption increased to 8.93 million barrels per day. These factors, coupled with stable strategic petroleum reserves, have helped keep prices lower than in previous years.
The disparity between regions remains stark. States like Oklahoma and Mississippi report the lowest averages at $2.48 and $2.56, respectively, while Hawaii and California lead with prices above $4. GasBuddy’s data suggests that local market conditions and refinery operations play a key role in these variances.
What People Are Saying
Andrew Gross, AAA spokesperson, told Newsweek: “Gasoline prices fluctuate daily, but there is also a seasonal pattern. Prices tend to dip in the autumn and early winter and start to rise again as spring approaches. It is typical for prices to bottom out around the holidays, as demand is low with shorter days and colder temperatures.”
Patrick De Haan, GasBuddy analyst, said in a blog post: “With oil prices continuing to move sideways, gas prices may hold near recent levels in the coming week.”
What Happens Next
As the holiday season concludes, analysts expect gas prices to remain relatively stable, with slight fluctuations driven by regional dynamics and crude oil trends.
“We could be heading into a period of relative stability when it comes to pump prices,” said AAA’s Gross.
GasBuddy also predicts that motorists could see continued moderate prices into early 2025, barring major geopolitical or economic disruptions.
The post Gas Hasn’t Been This Cheap at the Holidays Since COVID appeared first on Newsweek.
