Key Points: - The average price of unleaded gasoline in the U.S. has dropped to its lowest level since 2021, according to AAA data. - Nearly 110 million Americans are expected to travel by car during this holiday season.

On December 3, 2025, drivers in Schenectady, New York, filled up their tanks at GasWay Xpress Mart on 1120 Erie Avenue as national gasoline prices reached their lowest point since 2021, with some areas seeing prices fall below $3 per gallon.

American drivers are finally catching a break at gas stations this holiday season. AAA reports that for most of this month, the average price of unleaded gasoline has remained below $3 per gallon—marking the lowest level since 2021. This December is set to be the most affordable for fuel costs since the pandemic year of 2020.

Current fuel prices have declined by about 7% compared to a month ago and have plummeted roughly 43% from their mid-2022 peak, when post-pandemic inflation drove gasoline prices close to $5 per gallon.

The drop in fuel prices coincides with the peak U.S. travel season. AAA projects that between December 20 and January 1, over 122 million Americans will travel at least 50 miles from home—a record high. Nearly 90% of these travelers (about 110 million) plan to drive.

Lower gasoline prices may help offset the financial strain caused by high inflation in other sectors during the holidays. A CNBC survey revealed that just over 40% of respondents plan to cut holiday spending this year—a 6% increase from last year. Among these budget-conscious consumers, 46% cited high prices as the primary reason.

However, the national average masks significant regional disparities. As of this Monday, Hawaii and California still had average gasoline prices above $4 per gallon, while Oklahoma's average dipped below $2.30.