AAA: U.S. gas hits lowest prices of 2025
AAA reports that December 2025 has been the cheapest month at the pump this year, with the national average price of regular unleaded gasoline staying below $3 since Dec. 2 and hitting about $2.85–$2.86 per gallon this week, the lowest December prices since the pandemic year of 2020. Prices vary widely by state — from about $4.44 in Hawaii and $4.30 in California to roughly $2.30 in Oklahoma — but are more than 18 cents lower nationwide than a year ago as strong supply and West Texas Intermediate crude under $60 a barrel keep fuel costs down even while overall inflation, tariffs and living costs remain elevated. The article also notes that despite November’s 2.7% annual inflation reading, consumer confidence has fallen to its lowest level since April as Americans remain worried about prices and the job market.
📌 Key Facts
- AAA says the national average for regular unleaded has stayed below $3 per gallon since Dec. 2, reaching about $2.85 on Monday and $2.86 on Tuesday.
- This is the cheapest December for U.S. gas prices since 2020, with the national average more than 18 cents lower than at this time last year and 21 cents lower than a month ago.
- State averages range from roughly $4.44 in Hawaii, $4.30 in California and $3.92 in Washington to about $2.30 in Oklahoma and $2.42 in Arkansas and Iowa.
- AAA attributes the relief to strong gasoline supply and relatively low crude prices, with West Texas Intermediate under $60 per barrel for most of December.
- The piece ties lower gas prices to broader economic indicators, noting November CPI of 2.7% YoY, lingering concerns about data distortions from the 43‑day federal shutdown, and a December drop in the Conference Board consumer confidence index to its lowest level since April.
📊 Relevant Data
U.S. crude oil production reached 13.44 million barrels per day year-to-date through September 2025, setting a new record and contributing to strong supply and lower gas prices.
U.S. Oil Production Is On Pace For A New Record, But Growth Is Slowing — Forbes
Rising oil production in the U.S., Canada, and by OPEC+ countries has led to struggling oil prices and contributed to lower gasoline prices in December 2025.
Gas prices continue to drop. GasBuddy provides insight into how low they might go — WANE
California has the highest state gas tax at 70.9 cents per gallon in 2025, contributing to its elevated average gas prices compared to other states.
Gas Taxes by State, 2025 — Tax Foundation
U.S. drivers are expected to spend less than 2% of their personal disposable income on gasoline in 2025, the lowest share since 2005, providing relief amid broader economic pressures.
EIA expects U.S. drivers will spend the smallest share of their personal disposable incomes on gasoline in 2025 — U.S. Energy Information Administration