Holiday Road Trips Get a Price Break

December Brings Most Affordable Fuel Prices of the Year

Drivers across the U. S. are enjoying a pleasant surprise this holiday season: cheaper gas. December has turned out to be the most affordable month for fuel prices all year.

• National Average: Below $3 since December 2, hitting a low of about $2.85 per gallon.
• Current Price: Around $2.86 per gallon, remaining quite reasonable.

State Variations in Gas Prices

Not every state is seeing the same savings:

Year-over-Year Comparison

• Compared to Last Year: Over 18 cents cheaper.
• Compared to Last Month: 21 cents cheaper.
• Lowest Since 2020: Prices are the lowest since the COVID-19 pandemic caused major economic disruption.

Factors Behind Lower Prices

• Strong Fuel Supply: Crude oil, the main component of gasoline, has been relatively affordable.
• West Texas Intermediate: Stayed below $60 per barrel for most of December.

Consumer Relief Amid Inflation

• Welcome Change: Lower gas prices are a relief as consumers face higher prices in other areas.
• Inflation: Pushed up the cost of everyday items, from groceries to holiday gifts.
• November Inflation Rate: Rose 2.7% from the previous year, above the Federal Reserve's target of 2%.

Economic Cautions

• Data Accuracy: Economists caution that last month's data might not be entirely accurate due to delays and possible distortions from the 43-day federal shutdown.
• Ongoing Challenges: While gas prices are down, other economic challenges remain.