With the arrival of the year-end holiday season, the American Automobile Association (AAA) expects over 100 million Americans to choose road trips. According to AAA’s data, the number of holiday travelers this year is expected to reach a new high, while gasoline prices have dropped to a five-year low.
AAA’s latest data released on December 18 shows that the national average gas price has dropped over 4 cents from the previous week, to $2.89 per gallon. This marks the lowest December gasoline price since the end of 2020.
The organization’s data also indicates that fuel prices have decreased by about 7% compared to a month ago, and have fallen about 43% from the peak of nearly $5 per gallon in mid-2022. The high oil prices at that time were a result of the severe inflation caused by the pandemic.
Currently, crude oil prices continue to decline, and despite the increased demand for gasoline during the holiday travel season, the supply remains sufficient. Overall, the average gasoline prices in the United States in 2025 remain stable with minimal fluctuations.
At a time of falling gas prices, AAA estimates that during the 13-day holiday period from December 20 to January 1, more than 122 million Americans will travel at least 50 miles from home, surpassing last year’s record of 119.7 million travelers. Of these, nearly 90%, about 110 million people, choose to travel by car, making fuel prices a significant factor in holiday spending.
Analysts point out that the decline in gasoline prices helps offset the pressure from other expenses incurred during holiday travel. According to CNBC’s “All-America Economic Survey,” over 40% of respondents stated that they plan to reduce spending this holiday season, a 6 percentage point increase from the same period last year. Among these careful spenders, 46% attributed their decision to the persistently high prices.
Furthermore, there are significant regional differences in gas prices across the United States. On Monday (December 22), the average gas prices in Hawaii and California were above $4 per gallon, while in Oklahoma, prices were slightly below $2.30 per gallon, highlighting the noticeable disparity in gas prices across different regions.
AAA’s Vice President of Travel, Stacey Barber, stated, “End-of-year travel encompasses various forms like family road trips, gatherings with friends, and tropical getaways. Everyone celebrates the holidays differently, but the common thread is the desire to travel, whether it’s returning home or exploring new destinations.”