INDIANA — Holiday travelers are in for a welcome gift at the pump this year. According to a report released today by GasBuddy®, the national average for a gallon of gasoline is expected to land near $2.79 on Christmas Day.
This forecast places prices well below last year’s Christmas average of $3.00, representing a significant shift that will save American motorists over half a billion dollars ($521 million) during Christmas week compared to 2024. This marks the lowest Christmas Day price since 2020, continuing a trend of relief for holiday drivers.
Several market factors are converging to keep costs down as millions of Americans prepare to hit the road:
- Production Surplus: OPEC has increased oil production throughout much of 2025, pushing crude prices to multi-year lows.
- Supply and Demand: Gasoline supplies are rising as refinery maintenance winds down. Simultaneously, winter demand remains naturally lower than summer levels, keeping a lid on retail prices.
- Economic Stability: Unlike the post-pandemic surge of previous years, the current market is benefiting from high refinery output and a lack of significant international disruptions.
“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. “Provided there are no surprises, holiday travelers should see pump prices that come in a bit lower than last Christmas.”
The downward trend may not end with the holidays. De Haan noted that early indicators for the 2026 Fuel Outlook, set to be released in January, suggest lower prices could persist into the new year. Currently, diesel prices are also easing, with some cities seeing averages dip into the low-$2 range.
Holiday Pro-Tips for the Road
To maximize the “Christmas gift” at the pump, GasBuddy recommends the following strategies for travelers:
- Watch State Lines: Tax differences can cause prices to swing between 20 and 80 cents per gallon. Check prices before crossing state borders to find the cheapest fill-up.
- Use Tools: The GasBuddy app can help identify local variations of 10 to 25 cents, even within the same neighborhood.
- Stack Savings: Combine station loyalty programs with GasBuddy offers to drive the price-per-gallon even lower.
- Drive Efficiently: Maintaining steady speeds and using cruise control can improve fuel economy by up to 15% on long hauls.
