U.S. Gas Prices Predicted to Drop for Third Consecutive Year in 2025

GasBuddy forecasts a national average of $3.22 per gallon, though geopolitical and policy risks may drive volatility.

GasBuddy's 2025 Fuel Price Outlook predicts a national average gas price of $3.22 per gallon, down from $3.33 in 2024.
Americans are expected to spend $12.3 billion less on gasoline in 2025 compared to this year, with December projected to have the lowest monthly average of $2.89 per gallon.
Geopolitical tensions, extreme weather, and potential policy changes under President-elect Donald Trump are cited as risks for fuel price volatility.
Trump's proposed tariffs on Canada and Mexico, along with shifts in foreign and energy policy, could disrupt supply chains and global markets.
Expanding global refining capacity and moderating demand are expected to support lower prices, with regional variations showing California maintaining the highest state averages and Mississippi the lowest.