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Christmas gas prices drop to lowest level since 2020

For those hitting the road ahead of Christmas or getting last minute gifts, Santa has delivered.

Motorists will likely see a national average price of gas of $2.95 per gallon on Christmas, the lowest we’ve seen on Christmas Day since 2020, according to GasBuddy, the leading fuel savings platform saving North American drivers the most money on gas.

After waiting years for the national average to fall back to levels more consistent with norms, gasoline prices are finally there, thanks to the Federal Reserve slowing the economy down with higher interest rates, a weak economy in China, the world’s second largest oil consumer, and the ultimate healer: time.

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It has now been several years since the economy was growing at blistering pace, sending prices, including fuel, soaring across the globe, causing governments to increase borrowing costs, slowing the global economy, easing demand, which slowed inflation.

”This holiday season is shaping up to be a gift for American drivers, with gas prices presenting a stark contrast to the budget-breaking levels we’ve seen in recent years and a return to what feels like normal for many Americans filling their tanks,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “After waiting an exhausting two years for imbalances brought on by Covid and Russia’s war on Ukraine to settle down, we’re finally getting back to normal.”

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