AAA says a gallon hits 4-year low as holiday travel starts

Customers at the GasWay Xpress Mart at 1120 Erie Blvd. pump gas on Wednesday, Dec. 3, 2025, in Schenectady, N.Y.

Lori Van Buren | Albany Times Union | Hearst Newspapers | Getty Images

Holiday road-trippers are feeling some relief at the pump this year.

The average price of unleaded gasoline in the U.S. has been below $3 a gallon for most of the month — the lowest level since 2021, according to AAA. The association said it’s shaping up to be the cheapest December for drivers filling up their tanks going back to the pandemic year of 2020.

Fuel prices are down about 7% from a month ago, AAA data shows, and have tumbled roughly 43% from mid-2022 highs near $5 a gallon that followed runaway inflation in the wake of the pandemic.

The latest slide in prices comes as AAA forecasts a record of more than 122 million Americans will travel at least 50 miles from home in the 13 days between Dec. 20 and Jan. 1. AAA found nearly nine of 10 people on the move for the holiday — or close to 110 million — are expected to travel by car.

The drop in pump prices may help mitigate the impact of lingering inflation elsewhere during the holiday season.

Just over 40% of those polled said they planned to spend less at the holidays this year, a six-point increase from a year ago, according to CNBC’s All-America Economic Survey. Of those that are pinching pennies, 46% blamed the high cost of goods.

The national average masks wide, regional variances, as Hawaii and California both recorded average gas prices above $4 on Monday. In Oklahoma, meanwhile, a gallon came in just below $2.30.