Christmas Day gas prices expected to dip to a multi-year low

Image (c) ConsumerAffairs. This Christmas, gas prices are expected to average $2.79 per gallon, saving drivers $521 million nationwide.

GasBuddy estimates motorists will save $521 million compared to last year

  • National average gasoline price expected to be $2.79 per gallon on Christmas Day

  • Drivers projected to save about $521 million nationwide during Christmas week compared with last year

  • Prices remain below last Christmas and among the lowest holiday levels since 2020


While the cost of celebrating Christmas remains high, holiday travelers may find an unexpected bit of cheer at the gas pump this Christmas, with prices continuing a multi-year trend of seasonal relief. GasBuddy forecasts the national average price of gasoline will land near $2.79 per gallon on Christmas Day, down from about $3.00 a year ago.

That decline adds up. GasBuddy estimates motorists will collectively save roughly $521 million during the Christmas travel week compared with last year, offering some financial breathing room as millions of Americans hit the road to visit family and friends.

The favorable outlook reflects a combination of supply and demand dynamics that have eased pressure on prices heading into the holidays. Refinery maintenance that typically tightens supply earlier in the fall has largely wrapped up, allowing gasoline inventories to rebuild. At the same time, OPEC’s increased oil production through much of 2025 has pushed crude oil prices to multi-year lows in the weeks leading up to Christmas.

Less demand helps

Seasonal demand also plays a role. While holiday travel remains heavy, winter gasoline consumption is significantly lower than during the summer driving season, helping keep prices in check. That natural demand slowdown has allowed prices to settle near what are often the lowest levels of the year.

“Christmas is often when gas prices settle near the lowest levels of the year, and 2025 is no exception,” said Patrick De Haan, head of petroleum analysis at GasBuddy. 

“Refinery maintenance has wrapped up, supplies are rising, and winter demand is much lower than in summer — all of which help keep a lid on prices. Provided there are no surprises, holiday travelers should see pump prices that come in a bit lower than last Christmas.”

De Haan cautioned that unexpected refinery disruptions or international tensions could still introduce short-term volatility, but said the broader backdrop is far more favorable than in the years immediately following the pandemic, when reopening demand sent prices sharply higher. 

He also noted early indicators are encouraging as GasBuddy prepares to release its 2026 Fuel Outlook in January, with signs that lower prices could extend into next year.

Holiday tips

For drivers heading out this holiday season, GasBuddy recommends a few simple strategies to maximize savings:

  • Compare prices before filling up, as nearby stations can differ by 10 to 25 cents per gallon, and even more on longer trips.

  • Plan around state lines, where tax differences can create price swings of 20 to more than 80 cents per gallon.

  • Use loyalty programs and fuel-saving apps to stack discounts.

  • Drive efficiently, maintaining steady speeds and using cruise control, which can boost fuel economy by up to 15% on long drives.

Taken together, this year’s Christmas gas price outlook offers a modest but meaningful gift for holiday travelers — one that could make the journey home a little easier on the wallet.


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