Energy Prices and Oil Markets

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.