Motorists hitting the road during the Christmas and New Year’s holidays will find a nice gift when they pull up to a gas pump. The price is likely to be as cheap as it has been throughout 2024.
GasBuddy estimates the national average price of gas will be $2.95 per gallon on Christmas Day, the cheapest Christmas at the pump in four years.
There could be several reasons for this. GasBuddy notes that the Federal Reserve has slowed the economy with a series of interest rate hikes and that has helped to reduce demand.
Another reason is a weak economy in China, the world’s second-largest oil consumer. A third reason may be the passage of time. Once an economy heats up and sends prices higher, it takes several months for things to return to normal.
“This holiday season is shaping up to be a gift for American drivers, with gas prices presenting a stark contrast to the budget-breaking levels we’ve seen in recent years and a return to what feels like normal for many Americans filling their tanks,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
“After waiting an exhausting two years for imbalances brought on by Covid and Russia’s war on Ukraine to settle down, we’re finally getting back to normal.”
Cheapest and most expensive
Even though overall prices are falling, fuel prices are higher in some states than others. As we approach Christmas week, GasBuddy lists the states with the cheapest and most expensive gas.
Oklahoma ($2.46/gal) | Hawaii ($4.58/gal)
Texas ($2.53/gal) | California ($4.31/gal)
Mississippi ($2.55/gal) | Washington ($3.93/gal)
Arkansas ($2.54/gal) | Nevada ($3.60/gal)
Tennessee ($2.62/gal) | Oregon ($3.47/gal)
GasBuddy recommends holiday road trippers always check fuel prices before filling up, especially when crossing state lines where gas taxes can cause prices to fluctuate.
