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Gas Prices Slip Below $3 Nationwide as Holiday Travel Sets New Record

Analysts say abundant fuel supply is pushing prices lower.

Overview

  • National pump prices have fallen to roughly $2.79–$2.90, the cheapest December since 2020, with GasBuddy projecting about $2.79 on Christmas Day and more than $500 million in holiday-week savings.
  • AAA and GasBuddy link the decline to lower crude benchmarks, rising U.S., Canadian and OPEC+ oil output, and strong refinery runs that have kept supplies ample.
  • Regional gaps remain pronounced: Michigan averages $2.73 (a 2025 low), Pennsylvania sits near $3.11, Ohio is about $2.58 and Colorado roughly $2.44, while Houston averages near $2.29 with some stations below $2.
  • AAA forecasts a record 122.4 million people traveling for the year-end period, including about 109.5 million by car and more than 8 million by air.
  • INRIX expects Dec. 26 to be the peak congestion day, and the Pennsylvania Turnpike has suspended construction as it prepares for roughly 7.4 million vehicles through Jan. 1.