A customer at GasWay Xpress Mart (1120 Erie Blvd.) pumps gas on Wednesday, Dec. 3, 2025 in Schenectady, New York.
Lori Van Buren | Lori Van Buren Albany Times Union | Hearst Newspapers | Getty Images
People who go on holiday road trips seem to be feeling some relief from this year’s fulfillment.
The average price of unleaded gasoline in the U.S. has been below $3 a gallon for most of the month, the lowest level since 2021, according to AAA. The association said December is shaping up to be the cheapest month to refuel for drivers since 2020, when the pandemic hit.
Fuel prices are down about 7% from a month ago and about 43% from mid-2022 highs of around $5 a gallon due to runaway post-pandemic inflation, according to AAA data.
The price drop comes as AAA predicts that a record 122 million Americans will travel at least 80 miles from home in the 13-day period from Dec. 20 to Jan. 1. According to AAA, nearly 9 out of 10 people traveling during the period, or nearly 110 million people, are expected to travel by car.
Lower pump prices could help reduce the impact of lingering inflation in other regions during the holiday season.
According to CNBC’s National Economic Survey, just over 40% of those surveyed said they plan to spend less this holiday season, an increase of 6 percentage points from last year. Of those struggling with pennies, 46% said it was because of high prices.
The national average masks regional variations, as average gas prices in both Hawaii and California exceeded $4 on Monday. Meanwhile, in Oklahoma, a gallon was just under $2.30.
