On Tuesday, December 23, 2025, millions of Americans are in the middle of the busiest year-end travel stretch—and they’re getting a rare bit of relief at the pump. The national average price for regular gasoline is $2.858 per gallon, according to AAA’s daily tracking, down from $3.072 a month ago and $3.042 a year ago.
That drop is arriving precisely when demand tends to spike. AAA projects 122.4 million Americans will travel at least 50 miles from home during the year-end holiday period running Dec. 20 through Jan. 1, with 109.5 million expected to go by car—by far the most popular choice.
Below is what’s driving the cheaper gas story, where prices are lowest (and still painfully high), what oil markets are signaling right now, and how to avoid the worst traffic windows on December 23.
Gas prices today: $2.858 nationwide—and that’s a big deal for December
AAA’s national average of $2.858 reflects a fourth-quarter slide that has kept prices below the psychologically important $3 mark for much of the month. Compared with AAA’s daily figures, regular gas is down roughly 5 cents from last week, about 21 cents from a month ago, and about 18 cents from a year ago.
It also puts this holiday season in sharp contrast with the post-pandemic shock of 2022. AAA lists the highest recorded national average for regular gasoline at $5.016 (June 14, 2022). Today’s $2.858 is about 43% lower than that peak—helpful perspective for drivers who still remember $5+ signs as “normal.” AAA Fuel Prices
AAA’s broader fuel report has framed the pattern as unusually calm by recent standards, noting 2025’s national average has been relatively stable without the sharp spikes that defined earlier years.
Why gas is cheaper right now: strong supply, winter blends, and softer crude fundamentals
Behind the pump price is a mix of seasonal mechanics and big-picture oil market realities:
- Strong supply conditions are helping offset the holiday travel bump. AAA said crude prices have remained low and that supply has stayed strong even as gasoline demand increases around the holidays.
- Refinery maintenance is largely over, which typically helps fuel availability heading into late December. GasBuddy’s head of petroleum analysis Patrick De Haan said supplies are rising and winter demand is much lower than summer, helping “keep a lid on prices.” WCIV
- Demand is seasonal. Winter travel surges are real, but overall gasoline consumption typically runs lower than summer’s driving season—one reason price shocks often have less staying power in late December than in May or June.
AAA also cited the Energy Information Administration’s latest readings at the time of its report: gasoline demand increased week over week, domestic gasoline supply climbed, and gasoline production rose.
Oil prices on Dec. 23, 2025: steady near $60, pulled between geopolitics and oversupply fears
Crude oil is the biggest ingredient in gasoline, so what’s happening in oil markets matters to anyone planning a holiday road trip.
On Tuesday, Reuters reported oil prices were little changed, with Brent around $62.13 and U.S. WTI around $58.03 as traders weighed geopolitical risk against what Reuters described as bearish, well-supplied fundamentals.
The geopolitical side of the equation has been especially active:
- Reuters said the market was balancing U.S. actions affecting Venezuelan crude (including the possibility the U.S. could keep or sell seized oil, as President Donald Trump said) against broader expectations that supply remains ample.
- Reuters also pointed to heightened disruption fears linked to attacks affecting Russian vessels and port infrastructure in and around the Black Sea region.
Yet even with those headlines, the bigger “gravity” in the oil market remains supply-heavy. Reuters noted Barclays expects the market to be well supplied in the first half of 2026, though disruption could tighten conditions later. Reuters
AP’s market report added another consumer-relevant detail: despite recent gains, oil prices in 2025 have been under pressure overall, with demand lagging.
Where gas is cheapest—and where it still hurts: state-by-state extremes
The national average is only the headline. What drivers actually pay depends heavily on location.
AAA’s latest breakdown shows:
Most expensive gasoline markets
- Hawaii ($4.43)
- California ($4.33)
- Washington ($3.96)
- Alaska ($3.59)
- Oregon ($3.57)
(plus Nevada, Washington DC, Arizona, Pennsylvania, and New York in the top 10)
Least expensive gasoline markets
- Oklahoma ($2.34)
- Arkansas ($2.46)
- Iowa ($2.47)
- Colorado ($2.49)
- Wisconsin ($2.51)
(plus Texas, Mississippi, Louisiana, Kansas, and Tennessee in the top 10)
Consumer-facing coverage has echoed that gap. Fox News highlighted that the national average was about $2.855 on Dec. 22 and pointed to Oklahoma as the lowest-priced state in its list, with several central U.S. states coming in well below the national figure.
Holiday travel outlook: 122.4 million trips—and the road is still king
AAA expects year-end holiday travel to set another record:
- 122.4 million total travelers (Dec. 20–Jan. 1)
- 109.5 million traveling by car (about 89% of holiday travelers)
- 8.03 million taking domestic flights (AAA calls it a record and says it’s the first time above 8 million for this period)
- 4.9 million traveling by other modes like buses, trains, and cruises
AAA also said the average roundtrip domestic flight cost based on booking data is nearly $900, about 7% higher than last year—another reason many travelers will choose to drive if they can.
Best and worst times to drive on Dec. 23: avoid 1 p.m.–7 p.m. if you can
If you’re traveling on Tuesday (Dec. 23), timing matters as much as fuel costs.
AAA’s year-end travel forecast—drawing on INRIX traffic insights—lists Tuesday, Dec. 23 as having a worst travel window of 1:00 p.m. to 7:00 p.m., with the best time to travel before 10:00 a.m.
AAA expects the holiday itself (Christmas Day) to have minimal traffic impacts, but warns that crashes or severe weather can still create major delays.
Looking ahead, AAA flags Friday, Dec. 26 as another high-congestion day as people begin post-Christmas moves.
What a lower gas price actually saves: quick road-trip math
A few cents can feel small at the pump—until you multiply it by a holiday itinerary.
Using AAA’s daily national averages:
- $2.858 today vs. $3.042 a year ago = about 18.4 cents cheaper per gallon
- A typical 15-gallon fill-up saves about $2.76.
- A 1,000-mile round trip in a car getting 25 mpg uses about 40 gallons, saving roughly $7.36 versus last year’s average.
Those are national-average examples; in cheaper states, savings (or just baseline affordability) can be materially better. In higher-cost states—especially on the West Coast and Hawaii—the “national relief” headline often doesn’t match what drivers see on the street.
Christmas Day forecast: could the national average hit $2.79?
Some projections suggest the dip may continue into Christmas Day.
GasBuddy forecasts the national average price of gas on Christmas Day will land near $2.79 per gallon, and suggests motorists could save more than half a billion dollars during Christmas week compared with last year.
GasBuddy also cautioned that unexpected refinery issues or international tensions could still cause volatility—while noting that overall conditions look far better than they did a few years ago.
What could move gas prices next: the short list to watch
Even with the current “holiday gift” narrative, gas prices can change quickly. Here are the main forces that could sway prices into New Year’s:
- Oil market disruptions vs. oversupply reality
Reuters describes the oil market tug-of-war clearly: supply disruption fears (Venezuela, Black Sea shipping risks) are supporting prices, while broader fundamentals still look well supplied. - How far Venezuela-related tensions escalate
ABC News notes that Venezuela accounts for less than 1% of global oil output, which could limit the impact unless the conflict significantly escalates. - Seasonal demand and weather
Late December often features softer overall gasoline demand than summer, which can mute price spikes—but a severe winter storm can flip local conditions quickly.
Bottom line: a rare “cheap gas + record travel” combination
December 23, 2025 is shaping up as one of the most driver-friendly year-end travel setups in years: gas below $3 nationally, record-level road travel volume, and oil prices that—despite geopolitical noise—are not surging.
For travelers leaving today, the best move is simple: drive early (before 10 a.m.), avoid the 1–7 p.m. congestion window if possible, and remember that local pump prices can differ wildly from the national average.
