Motorists can expect a modest decline in U.S. gas prices in 2025 amid low inflation and a pickup in domestic oil production.
After rising significantly in the first half of the year, prices fell in the second half of 2024, says AAA data Shows. Nationwide, a gallon of regular gas now averages $2.98 That's about 12 cents less a gallon than a year ago, according to tracking service GasBuddy.
The average US price is $2.89, although fuel costs can vary widely depending on region and state. Drivers in Hawaii face the highest prices as usual at $4.47 per gallon, followed by California ($4.27) and Washington ($3.81), GasBuddy said in a new report. reportThe cheapest gas is found in Oklahoma ($2.51), Mississippi ($2.55) and Texas ($2.59).
“After a few weeks of rising gas prices, the national average has turned around and is trending downward as we approach 2024,” Patrick de Haan, head of petroleum analysis at GasBuddy, said in a statement. “2024 will be the second consecutive year of decline in the national average.”
GasBuddy expects fuel prices to continue falling into 2025. The national average for a gallon of regular is projected to drop to $3.22 next year, after averaging $3.33 in 2024, CNN informedCiting GasBuddy data.
This could provide further relief to consumers who are struggling with high prices of basic goods like food and rent. Most economists expect inflation to decline in 2025, although many caution that President-elect Donald Trump's threats comprehensive fee And deporting unauthorized immigrants could raise consumer prices.
“We expect the underlying core [Personal Consumption Expenditures] Inflation trend will fall from 2.8% to 2.1% by the end of 2025 capturing inflation “Wage pressures should ease late next year, leading to modest price gains,” Goldman Sachs analysts said in a research note. “Tariffs would increase real inflation by about 2.4% in our baseline.”
On average, the US is the world's leading producer of crude oil 12.9 million barrels per day in 2023 – a record for any country around the world, according to the Energy Information Administration.