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U.S. Gas Prices Fall to $2.89 Average, Cheapest December Since 2020

A surplus of fuel relative to winter demand is restraining prices.

Overview

  • AAA puts the national average at about $2.89 per gallon this week, with roughly 40 states now below $3.
  • EIA reports gasoline demand rose to 9.07 million barrels per day last week as inventories increased to 225.6 million barrels and production averaged 9.6 million barrels per day.
  • Analysts tie the downturn to ample supply and lower crude benchmarks, with U.S. oil prices holding in the upper $50s per barrel.
  • Regional gaps remain pronounced, from about $2.34 in Oklahoma to roughly $4.43 in Hawaii, with the D.C. area averaging $3.17.
  • Outlooks suggest further easing, with GasBuddy forecasting around $2.79 on Christmas and EIA projecting near-$3 retail averages in 2026 barring major disruptions.