This period, many U.S. drivers are getting the benefit of lower gas prices.
According to data from motor club AAA, December has been the most affordable month for pump prices this year. The national average for unleaded gasoline has stayed below the $3 mark since Dec. 2, dropping to its lowest level of roughly $2.85 a gallon on Monday.
That figure has risen slightly since then, sitting at closer to $2.86 a gallon on Tuesday — but overall, consumers traveling ahead of the Christmas holiday will likely continue to see moderate prices.
As always, some states have cheaper average prices than others, due to factors ranging from nearby refinery supply to local fuel requirements. Hawaii had the highest average of about $4.44 a gallon on Tuesday, — followed by $4.30 in California and $3.92 in Washington. Meanwhile, Oklahoma had the lowest average at around $2.30 per gallon, followed by nearly $2.42 in both Arkansas and Iowa.
Still, nationwide, unleaded gasoline is down more than 18 cents compared to this time last year, and 21 cents from a month ago. So far, AAA says that prices seen this month mark the cheapest December for gas prices since 2020, when the roiled the economy.
The travel organization notes that this month’s cheaper prices arrive as supply remains strong. Crude oil, the main ingredient in gasoline, has also been at a relatively mild level — with West Texas Intermediate staying below the $60 per barrel mark for most of December.
Relief at the pump is welcome for consumers who have been in other parts of their budgets — as worries about the costs of goods ranging from groceries to holiday gifts rise amid ongoing inflation and U.S. President Donald Trump’s on foreign imports.
Government data actually showed that in November, rising at just 2.7% from a year earlier. But year-over-year inflation still remains well above the Federal Reserve’s 2% target — and economists quickly warned that last month’s numbers were suspect because of delays and possible distortions from the .
Most Americans have continued to express anger and frustration about the high cost of living — as well as an uncertain job market. On Tuesday, the Conference Board said that its consumer confidence index to its lowest level since April.