American consumers continue to catch a break at the gas pump with roadside assistance company AAA reporting Thursday that the national average price for a gallon of regular gasoline is $2.896.
The average dipped below $2.90 for the first time in more than four years, punctuating what has been a steady decline in prices over the past month. Deriv.com contributor and CEO of financial education site First Information Vince Stanzione said the president’s push for lower gas prices and the global oil supply are helping ease prices across the country.
“As we head into 2026, the world remains well supplied with oil, and with President Donald Trump openly pushing for cheaper energy, the path of least resistance for crude is lower,” Stanzione said in an email to The Independent. “The world remains oversupplied with oil, and Russia continues to sell its oil to willing Indian refiners, which then resell refined products back to Europe, keeping global prices down.”
Thursday’s average price of $2.896 for a gallon of regular gas is down around one cent compared to Wednesday, and around 18 cents from one month ago.
Patrick De Haan, head of petroleum analysis at gasoline pricing platform GasBuddy, noted in a press release that, political and oil factors aside, gas prices usually decline this time of year.
“Christmas is often when gas prices settle near the lowest levels of the year, and 2025 is no exception,” De Haan said. “Refinery maintenance has wrapped up, supplies are rising, and winter demand is much lower than in summer - all of which help keep a lid on prices. Provided there are no surprises, holiday travelers should see pump prices that come in a bit lower than last Christmas.”
Where is gas cheapest?
The lowest average fuel price in the country can be found in Oklahoma, where a gallon of regular gas will set you back around $2.43. Oklahoma is one of only four states with average prices under $2.50 - Arkansas, Colorado, and Iowa are the other three.
Where is gas most expensive?
Hawaii continues to have the highest average price of gas at $4.438, due, in part, to the cost of shipping gas to the island state. California is home to the highest average price in the contiguous United States, with a gallon of regular fuel costing $4.334.
Will prices continue to drop?
Yes, according to De Haan. He sees several “encouraging early trends” that may lead to lower prices that continue to slide into early next year.
In the meantime, consumers looking for the best deals on gas prices may find cheaper fuel across state lines. GasBuddy noted that varying state taxes on gas can influence prices by anywhere from 20 to 80 cents per gallon.
