GasBuddy head of petroleum Patrick De Haan discusses the drop in fuel prices across the country in ‘Varney & Co.
Gas prices fell during the holiday season despite increased demand as record numbers of people hit the road.
The national average for a gallon of regular gasoline fell more than 4 cents to $2.89 last week, according to AAA. This marks the cheapest December at the pump since the end of 2020, according to data from AAA.
Gas Prices – National Average: $2.89
AAA characterized the year as “stable” in prices given that there were no sharp increases.
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Andy Lipow, president of Lipow Oil Associates, said the consumer is benefiting from “a significant increase in crude oil driving prices below $60 per barrel” which is driving down gasoline prices.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| THE FACE | UNITED STATES OIL FUND – USD ACC | 67.19 | -0.79 |
-1.16% |
| BNO | UNITED STATES BRENT OIL FUND – USD ACC | 27.58 | -0.33 |
-1.18% |
West Texas Intermediate (WTI) crude oil, the US benchmark, is trading at around $56.55 per barrel, while Brent Crude, the international benchmark, was close to $59.82 per barrel on Friday.
The states with the cheapest gas include Oklahoma $2.34, Arkansas $2.46, Iowa $2.47, Colorado $2.49 and Wisconsin $2.51.
States with the highest rates include Hawaii $4.43, California $4.33, Washington $3.96, Alaska $3.59, and Oregon $3.57.
Keeping crude oil prices low is important given that they typically account for nearly half, if not more, of total pump costs, depending on market conditions.
Customer Jann Gregg of Schenectady pumps gas at the GasWay Xpress Mart at 1120 Erie Blvd. gas pump on Wednesday, December 3, 2025, in Schenectady, NY (Lori Van Buren/Albany Times Union via Getty Images/Getty Images)
Lipow credited this surplus to “near record production in the United States, Canada, Brazil, Argentina, and Guyana” while the Organization of the Petroleum Exporting Countries (OPEC) and its partners, are reversing their voluntary production cuts established a few years ago.
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OPEC+ is an organization of oil producing countries that work together to control oil supply and influence prices.
“In fact, these low prices have forced OPEC+ to rethink their strategy, and stop the return of additional barrels to the market from January 2026,” said Lipow, adding that prices would have dropped significantly if China had not bought discounted oil from Russia, Iran and Venezuela to maintain their oil reserves.
A morning commuter rides a bicycle past a gas station price sign on West Third Street in a misty rain on November 21, 2025, in Bloomington, Indiana. (Photos by Jeremy Hogan/Getty Images)
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However, this supply surplus, along with low prices, has given the Trump Administration the ability to adopt a policy to deal with Venezuela.
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In fact, the market can absorb the loss of Venezuelan oil now without the risk of a price increase, Lipow explained.
A gas pump is seen at a Valero gas station on June 30, 2025 in Austin, Texas. (Photos by Brandon Bell / Getty Images)
Fuel prices are also expected to continue to decline as the price of crude oil remains low.
The EIA’s November Short-Term Energy Outlook predicted that the price of Brent Crude oil would fall from $69 a barrel in 2025 to $55 a barrel next year. That would be less than the $81 per barrel it was in 2024.
Natural gas prices are expected to rise to about $3 a gallon by 2026, according to the report.
