U.S. Drivers Enjoy Lowest Gas Prices This Holiday Season

U.S. drivers are experiencing a welcome break from high fuel costs this holiday season, with gasoline prices hitting their lowest levels of the year. According to the American Automobile Association (AAA), December has emerged as the cheapest month for gas, with the national average for unleaded gasoline remaining below the US$3 mark since December 2, 2023. The price dipped to approximately $2.85 per gallon on December 11, before slightly increasing to around $2.86 per gallon on December 12.

As families prepare for travel during the Christmas holiday, many will benefit from mild prices at the pump. However, variations in state averages mean that not all drivers will pay the same amount. Hawaii recorded the highest average gas price at about $4.44 per gallon, followed closely by California at $4.30 and Washington at $3.92. In contrast, Oklahoma boasts the lowest average at approximately $2.30 per gallon, with Arkansas and Iowa not far behind at around $2.42.

Nationwide, the price of unleaded gasoline is down more than 18 cents compared to the same time last year and 21 cents from a month ago. AAA notes that prices this December represent the lowest since 2020, a year marked by significant economic turmoil due to the COVID-19 pandemic. The organization attributes this decline to a strong supply of fuel and stable crude oil prices, which have hovered below $60 per barrel for most of the month.

The decrease in gas prices comes as a relief to consumers facing rising costs in other areas, including groceries and holiday gifts, amid ongoing inflationary pressures. The economic landscape remains uncertain, particularly with concerns stemming from tariffs imposed on foreign imports by former U.S. President Donald Trump.

While government data indicated that consumer prices rose by just 2.7 percent in November 2023 compared to the previous year, inflation continues to exceed the Federal Reserve’s target of 2 percent. Economists have cautioned that these figures may be influenced by anomalies related to the recent federal government shutdown.

Public sentiment reflects ongoing frustration regarding the cost of living and job market uncertainties. The Conference Board reported that its consumer confidence index fell in December to its lowest level since April, further highlighting the challenges faced by many Americans as they navigate the current economic climate.