Nationwide Gas Prices Drop to $2.89 Amid Holiday Travel Surge
GasBuddy head of petroleum analysis Patrick De Haan discusses the decline in gasoline prices across the country on ‘Varney & Co.’
Gas prices have fallen just in time for the holiday, despite an increase in demand as a record number of people begin to hit the road.
The national average for a gallon of regular gasoline decreased by more than 4 cents to $2.89 last week, according to AAA. This marks the lowest December price at the pump since the end of 2020, based on AAA data.
Gas Prices – National Average: $2.89
AAA characterized the year as “stable” for prices, noting that there haven’t been any sharp spikes.
GAS PRICES DROP BELOW $3 NATIONWIDE AS TRUMP SAYS $2 GAS WITHIN REACH
Andy Lipow, president of Lipow Oil Associates, stated that consumers are benefiting from a “significant oversupply of crude oil driving prices below $60 per barrel,” which is subsequently lowering retail gasoline prices.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND – USD ACC | 67.19 | -0.79 | -1.16% |
| BNO | UNITED STATES BRENT OIL FUND – USD ACC | 27.58 | -0.33 | -1.18% |
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading around $56.55 per barrel, while Brent Crude, the international benchmark, is near $59.82 per barrel as of Friday.
The states with the cheapest gas include:
- Oklahoma: $2.34
- Arkansas: $2.46
- Iowa: $2.47
- Colorado: $2.49
- Wisconsin: $2.51
Conversely, the states with the highest prices are:
- Hawaii: $4.43
- California: $4.33
- Washington: $3.96
- Alaska: $3.59
- Oregon: $3.57
Maintaining low crude oil prices is crucial, as it typically accounts for around half, if not more, of the overall pump cost, depending on market conditions.
Customer Jann Gregg of Schenectady pumps gas at the GasWay Xpress Mart at 1120 Erie Blvd. on Wednesday, Dec. 3, 2025, in Schenectady, N.Y. (Lori Van Buren/Albany Times Union via Getty Images / Getty Images)
Lipow attributed this surplus to “near record production out of the United States, Canada, Brazil, Argentina, and Guyana,” while the Organization of the Petroleum Exporting Countries (OPEC) and its allies have been restoring their voluntary production cuts enacted several years ago.
OIL AND GAS DEMAND COULD GROW UNTIL 2050, IEA SAYS
OPEC+ is a coalition of oil-producing countries that collaborate to control oil supply and influence prices. Lipow noted that these lower prices have forced OPEC+ to rethink their strategy, halting the return of additional barrels to the market starting January 2026. He added that prices could have been even lower if China hadn’t purchased discounted oil from Russia, Iran, and Venezuela to stock their strategic petroleum reserves.
A morning commuter rides a bicycle past a gas station price sign on West Third Street in foggy rain on November 21, 2025, in Bloomington, Indiana. (Jeremy Hogan/Getty Images / Getty Images)
This surplus of supply, along with lower prices, has allowed the Trump Administration to adopt a more confrontational policy with Venezuela. According to Lipow, the market can currently absorb the loss of Venezuelan oil without risking a price spike.
A gas pumping nozzle is seen at a Valero gas station on June 30, 2025, in Austin, Texas. (Brandon Bell/Getty Images / Getty Images)
Gas prices are expected to continue their decline as crude oil prices remain low. The EIA’s November Short-Term Energy Outlook projected that the price of Brent Crude oil will decrease from $69 a barrel in 2025 to $55 a barrel next year, significantly lower than the $81 per barrel average in 2024.
Retail gas prices are anticipated to hover around $3 a gallon in 2026, according to the report.
GasBuddy head of petroleum analysis Patrick De Haan discusses the decline in gasoline prices across the country on ‘Varney & Co.’
Gas prices have fallen just in time for the holiday, despite an increase in demand as a record number of people begin to hit the road.
The national average for a gallon of regular gasoline decreased by more than 4 cents to $2.89 last week, according to AAA. This marks the lowest December price at the pump since the end of 2020, based on AAA data.
Gas Prices – National Average: $2.89
AAA characterized the year as “stable” for prices, noting that there haven’t been any sharp spikes.
GAS PRICES DROP BELOW $3 NATIONWIDE AS TRUMP SAYS $2 GAS WITHIN REACH
Andy Lipow, president of Lipow Oil Associates, stated that consumers are benefiting from a “significant oversupply of crude oil driving prices below $60 per barrel,” which is subsequently lowering retail gasoline prices.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND – USD ACC | 67.19 | -0.79 | -1.16% |
| BNO | UNITED STATES BRENT OIL FUND – USD ACC | 27.58 | -0.33 | -1.18% |
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading around $56.55 per barrel, while Brent Crude, the international benchmark, is near $59.82 per barrel as of Friday.
The states with the cheapest gas include:
- Oklahoma: $2.34
- Arkansas: $2.46
- Iowa: $2.47
- Colorado: $2.49
- Wisconsin: $2.51
Conversely, the states with the highest prices are:
- Hawaii: $4.43
- California: $4.33
- Washington: $3.96
- Alaska: $3.59
- Oregon: $3.57
Maintaining low crude oil prices is crucial, as it typically accounts for around half, if not more, of the overall pump cost, depending on market conditions.
Customer Jann Gregg of Schenectady pumps gas at the GasWay Xpress Mart at 1120 Erie Blvd. on Wednesday, Dec. 3, 2025, in Schenectady, N.Y. (Lori Van Buren/Albany Times Union via Getty Images / Getty Images)
Lipow attributed this surplus to “near record production out of the United States, Canada, Brazil, Argentina, and Guyana,” while the Organization of the Petroleum Exporting Countries (OPEC) and its allies have been restoring their voluntary production cuts enacted several years ago.
OIL AND GAS DEMAND COULD GROW UNTIL 2050, IEA SAYS
OPEC+ is a coalition of oil-producing countries that collaborate to control oil supply and influence prices. Lipow noted that these lower prices have forced OPEC+ to rethink their strategy, halting the return of additional barrels to the market starting January 2026. He added that prices could have been even lower if China hadn’t purchased discounted oil from Russia, Iran, and Venezuela to stock their strategic petroleum reserves.
A morning commuter rides a bicycle past a gas station price sign on West Third Street in foggy rain on November 21, 2025, in Bloomington, Indiana. (Jeremy Hogan/Getty Images / Getty Images)
This surplus of supply, along with lower prices, has allowed the Trump Administration to adopt a more confrontational policy with Venezuela. According to Lipow, the market can currently absorb the loss of Venezuelan oil without risking a price spike.
A gas pumping nozzle is seen at a Valero gas station on June 30, 2025, in Austin, Texas. (Brandon Bell/Getty Images / Getty Images)
Gas prices are expected to continue their decline as crude oil prices remain low. The EIA’s November Short-Term Energy Outlook projected that the price of Brent Crude oil will decrease from $69 a barrel in 2025 to $55 a barrel next year, significantly lower than the $81 per barrel average in 2024.
Retail gas prices are anticipated to hover around $3 a gallon in 2026, according to the report.
