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Holiday gas prices hit five-year low

Drivers are getting a break at the pump as the year comes to a close, according to new data from AAA.

The national average gas price fell more than four cents over the past week to $2.89, making this the cheapest December for fuel since the end of 2020.


AAA said lower crude oil prices and strong fuel supplies are keeping prices down, even as holiday travel pushes gasoline demand higher. Overall, the group described 2025 as a stable year for gas prices, with few major swings and no sharp spikes.

Gas now costs less than it did a month ago, when the national average topped $3.07, and less than this time last year, when drivers paid just over $3.03 per gallon.

According to the Energy Information Administration, gasoline demand rose last week as more travelers hit the road. At the same time, domestic gasoline supply increased, helping prevent prices from climbing.

Holiday gas prices hit five-year low

Crude oil prices edged higher during midweek trading, settling just under $56 a barrel. Even so, U.S. oil inventories remain below the five-year average for this time of year.

Electric vehicle drivers saw no change in charging costs. The national average price to charge at a public station held steady at 38 cents per kilowatt hour.

Gas prices still vary widely by state. Hawaii, California, and Washington continue to top the list for the most expensive fuel, while Oklahoma, Arkansas, and Iowa remain among the cheapest places to fill up.

AAA said drivers can track gas and EV charging prices along their routes using its TripTik travel planner. The organization’s fuel report will resume regular updates on Jan. 8.



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