Cheaper gas and record travel mark the holiday season

As millions of Americans prepare to travel during the year-end holidays, falling and stable gasoline prices are shaping up to be one of the season's biggest economic relievers after several years marked by energy volatility.

According to projections by GasBuddy, the national average price of gasoline on Christmas Day will hover around $2.79 per gallon, down from about $3 a year ago. This decrease will allow drivers to save more than $500 million during the holiday week, according to the firm specializing in fuel analysis.

The projected level by the end of 2025 brings gasoline prices in line with pre-pandemic COVID-19 figures, before supply chain disruptions and geopolitical tensions disrupted global energy markets.

"If there are no surprises, vacation travelers should see prices at the pump a bit lower than last Christmas," noted Patrick De Haan, head of oil analysis at GasBuddy, according to a report from Fox News.

"We are also seeing encouraging early trends as we prepare to release our 2026 Fuel Outlook in January, with indications that lower prices could continue next year," he added.

Record number of travelers driven by lower costs

The decline in fuel prices coincides with a sharp increase in holiday travel. The American Automobile Association (AAA) estimates that 122.4 million Americans will travel at least 50 miles from home during this period, which is 2.7 million more than last year.

Of that total, 109.5 million are expected to take road trips, a 2% increase over 2024, driven by the affordability, flexibility and convenience of cars, which remains the preferred mode for nearly 90% of travelers.

GasBuddy noted that drivers have already benefited from lower prices during key holidays such as Labor Day and Thanksgiving Day, when gas prices hit their lowest levels of the year. During the latter holiday, nearly 30 states recorded prices below $3 per gallon.