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Data by the American Automobile Association shows that December has been the cheapest month of the year for gas prices.
The magic of Christmas has also arrived for drivers, with gas prices at their lowest level since March. Many Americans will be able to take their road trips with greater peace of mind, knowing that filling up the tank will not cost a fortune.
To the surprise of many, data from the American Automobile Association (AAA) show that December has been the cheapest month of the year for gas prices. During the holiday season, the national average price of regular gasoline has remained below $3 per gallon, reaching its lowest point on December 22 at an average of $2.85.
This Monday, December 23, prices rose slightly to $2.86 per gallon. Even so, drivers remain hopeful that prices will stay below $3 for the rest of the week, as they have throughout the month.
Gas prices fall during the month of December
The price of unleaded gasoline has dropped by more than 18 cents compared with the same date last year, and by 21 cents compared with last month, showing a positive trend. AAA says that the prices seen this month mark the cheapest December since 2020, after the COVID-19 pandemic caused major shifts in the market.
According to AAA, this month’s low prices are linked to strong supply levels that continue nationwide. Meanwhile, crude oil prices have also remained relatively moderate, with West Texas Intermediate (WTI) staying below $60 per barrel for most of December.
The drop in gas prices offers some relief to consumers. Although consumer prices rose only 2.7% year over year in November, inflation remains above the Federal Reserve’s target, and some economists have questioned the reliability of the data due to possible distortions caused by the prolonged government shutdown, according to Transport Topics.
Fuel prices by region
Despite the national average remaining below $3 per gallon, some states report higher averages due to various factors. The states with the highest averages on December 23, according to AAA, were:
- Hawaii – $4.44 per gallon
- California – $4.30 per gallon
- Washington – $3.92 per gallon
On the other hand, AAA data show that Oklahoma had the lowest average at $2.30 per gallon, followed by Arkansas and Iowa at nearly $2.42 per gallon.
Diesel prices by region for the week of December 22, according to data from the U.S. Energy Information Administration (EIA), are as follows:
- Lower Atlantic – $3.557
- Central Atlantic – $3.892
- East Coast – $3.674
- West Coast – $4.205
- Gulf Coast – $3.214
- Midwest – $3.483
- Rocky Mountains – $3.304
- New England – $4.047
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