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

Cheaper crude alongside rising gasoline inventories is pushing pump prices lower despite heavier holiday driving.

Overview

  • AAA reports the national average for regular gasoline at about $2.89–$2.90 this week, with roughly 40 states now averaging under $3 per gallon.
  • EIA data show gasoline demand rising to 9.07 million barrels per day last week as total supply increased to 225.6 million barrels and production averaged 9.6 million barrels per day.
  • Analysts attribute the decline to relatively low crude prices near $56–$60 per barrel and abundant global supply, including strong North and South American output.
  • Regional gaps remain wide, with Oklahoma around $2.34 per gallon and Hawaii near $4.43; the Lower Atlantic averaged about $2.72, and D.C. stood at roughly $3.17, the seventh most expensive.
  • AAA projects about 122.4 million Americans will travel 50 miles or more from Dec. 20 through Jan. 1, adding short bursts of demand during the holiday period.