Holiday road travelers will likely benefit from gas prices dropping below $3 per gallon for the first time since May 2021.
Key Details
- GasBuddy, a website and app that provides data about gas rates, says that holiday travelers will have the added benefit of lower gas prices this holiday season.
- The national average of gas is currently $1.83 per gallon lower than its record peak of $5.02 per gallon on June 14, 2022.
- AAA lists the current national average as $3.12 per gallon, which could drop further in the days leading up to Christmas weekend.
- GasBuddy projects a national average of $2.98 per gallon on Christmas morning.
Why it’s Important
The ongoing war in Ukraine, high inflation, supply chain shortages, and economic stress contributed to record-setting gas prices earlier this year. The average slowly reduced over the following six months and has cooled to a record low this year—just in time for hundreds of millions of Americans to benefit from cheaper travel.
“Those heading out on the road for the holidays will receive the gift they’ve been waiting for all year: lower gas prices,” says GasBuddy.
The steep decline in gas prices over the past two months was due to economic cooling. COVID outbreaks in China, recession fears, and less driving have cooled oil and gas prices as more Americans focus on spending for essentials, The Washington Post reports.
Of course, it’s not good news for oil and gas companies, who booked record profits in the third quarter of the year as a result of some of the highest prices in years. Exxon Mobil had its highest profit quarter ever, notching in $20 billion on revenues of $109 billion.
Notable Quote
“As 2022 draws to a close, we’ve seen gas prices cut nearly in half in some areas compared to this earlier this year—a well-needed break from the sky-high prices we faced just six months ago. Things are starting to feel a bit more normal, with gas prices far more affordable. Americans are saving around $25 per fill-up compared to prices this summer. While we’re closing out the year on a positive note, challenges remain that could drive prices up again next spring, so motorists might want to keep their expectations in check and enjoy the sub-$3 gasoline while they can,” says GasBuddy analyst Patrick De Haan.