GasBuddy’s 2025 Fuel Price Outlook forecasts that the average price of gasoline in the U.S. will be $3.22 per gallon next year. The report, published recently, details expected monthly price fluctuations, with the highest price forecast for April at $3.67 per gallon and the lowest in December at $2.81 per gallon. The monthly average prices range from a low of $2.89 in December to a high of $3.46 in April.
The outlook marks a third consecutive year of falling gasoline prices, according to GasBuddy, a subsidiary of PDI. The company noted that the national average in 2025 will be lower than the 2024 average of $3.33 and well below the record highs seen in 2022.
Americans are projected to spend over $12 billion less on gasoline in 2025 compared to 2024, offering relief to drivers and businesses alike. Despite this, GasBuddy’s petroleum analysis head, Patrick De Haan, cautioned that risks such as geopolitical tensions, extreme weather, and changes in U.S. policy could create volatility in the fuel market. He also noted that growing global refining capacity and stable demand are expected to support lower prices for most of the year.
While GasBuddy’s forecast predicts a drop in prices, the U.S. Energy Information Administration (EIA) offers a slightly more conservative outlook. In its December Short-Term Energy Outlook (STEO), the EIA estimated the average regular gasoline price will be $3.19 per gallon in 2025, a slight decline from $3.31 in 2024. The EIA’s previous forecast in November predicted prices of $3.32 per gallon in 2024 and $3.17 per gallon in 2025.
As of December 30, 2023, the EIA’s latest fuel update reported a regular gasoline price of $3.006 per gallon in the U.S. The highest price was recorded in the West Coast region at $3.770 per gallon, while the Gulf Coast had the lowest at $2.613 per gallon.
The AAA Fuel Prices website reports that the average regular gasoline price on January 2, 2024, was $3.067 per gallon. This is slightly higher than the previous day’s price of $3.062 per gallon and the same as the monthly average of $3.047. A year ago, the average price was $3.104 per gallon. The highest recorded price was $5.016 per gallon on June 14, 2022.
In summary, while U.S. gasoline prices are expected to continue their decline in 2025, factors such as global events and domestic policies could affect future price stability. However, for now, Americans can expect significant savings at the pump next year.
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