Holiday Road Trips Get a Price Break

Drivers across the U. S. are enjoying a pleasant surprise this holiday season: cheaper gas. December has turned out to be the most affordable month for fuel prices all year. The national average for unleaded gasoline has been below $3 since December 2, hitting a low of about $2. 85 per gallon. Prices have since crept up a bit to around $2. 86 per gallon, but overall, they remain quite reasonable. Not every state is seeing the same savings, though. Hawaii tops the list with the highest average price at about $4. 44 per gallon, followed by California at $4. 30 and Washington at $3. 92. On the other end, Oklahoma boasts the lowest average at around $2. 30 per gallon, with Arkansas and Iowa close behind at nearly $2. 42. Compared to last year, unleaded gasoline is now over 18 cents cheaper, and it's 21 cents cheaper than it was just a month ago. This December's prices are the lowest since 2020, when the COVID-19 pandemic caused a major economic disruption.The lower prices come as fuel supply remains strong. Crude oil, the main component of gasoline, has also been relatively affordable, with West Texas Intermediate staying below $60 per barrel for most of December. For consumers, this relief at the pump is a welcome change, especially as they face higher prices in other areas. Inflation has been pushing up the cost of everyday items, from groceries to holiday gifts. While consumer prices did cool slightly in November, rising just 2. 7% from the previous year, inflation is still above the Federal Reserve's target of 2%. Economists caution that last month's data might not be entirely accurate due to delays and possible distortions from the 43-day federal shutdown. So, while gas prices are down, other economic challenges remain.