The national average for regular unleaded gas dipped to $2.85 per gallon last week, down 22 cents in one month and below $3 since early December. This marks the lowest since March 2021, with GasBuddy forecasting $2.79 by Christmas Day barring disruptions.

Cheapest metros include Lawton, OK at $2.18, followed by Oklahoma City at $2.18 and Columbus, NE at $2.19. Highest prices persist in California and Hawaii: Lihue, HI at $4.97, Hilo, HI at $4.63, and San Diego, CA at $4.56.

Diesel averages $3.63, down 1.5% weekly. Crude oil hit $55 per barrel on December 16, the lowest since February 2021, amplifying the downward pressure.

Key Factors Driving the Decline

Surging OPEC and U.S. oil production, combined with winter refinery efficiencies and lower demand, keeps prices suppressed. Refinery maintenance has ended, boosting supplies from 214.4 to 220.8 million barrels, despite a slight dip in production to 9.6 million barrels per day.

Gasoline futures traded at 1.71 USD/Gal on December 18, down 11.98% monthly. Experts note winter-blend gas is cheaper to produce, and global oversupply could sustain lows into 2026, potentially aided by Russia-Ukraine peace talks.

About 60 stations nationwide sell regular under $2, mainly in Missouri, Colorado, Oklahoma, and Texas. State-line crossings can vary prices by 80 cents per gallon.

Impacts on Holiday Travel and Savings

Drivers save nearly $400 million weekly versus last year, when prices averaged 12.3 cents higher. AAA projects record travel, yet lower costs mean paying 12 cents less per gallon than 2024 holidays.

Annual savings exceed $105 per motorist, with prices lower in most states year-over-year. Bankrate highlights relief amid rising other costs, positioning gas as a key budget bright spot into 2026.

Plan fuel stops wisely, as regional disparities remain stark between Midwest lows and West Coast highs.