Image Source: Unsplash

Christmas has come early for the American consumer as the national average for a gallon of gasoline according to AAA fell fractionally below $3 yesterday for the first time since May 2021. As shown below, gas prices have been muted this year with far smaller swings than has been the case for most of the past few years (more on this below). Over the past year, prices have remained in the low $3 range with the the highest price attained being $3.27 in early April.  It's now at $2.99/gallon.

The usual seasonal pattern for gas prices - which has been historically consistent with a ramp higher in the first half of the year followed by declines in the second half - has been less pronounced this year. Prices traded flat through September and have been trending lower since.
 

Prior to this week's fresh low below $3/gallon, there had only been a 25.7 cent difference between the past year's high and low price, which is the smallest high/low spread on record for the AAA series dating back to 2005.

At current levels, prices are down 5 cents versus one year ago. 2025 is now the third year in a row with a lower price of gas year-over-year as of December 1st, although we saw prices in the low to mid-$2 range in the second half of the 2010s.

While the narrative for much of 2025 has been "uncertainty" for the consumer, gas prices have been extremely stable and are now back in the $2s as we enter the peak of the holiday shopping season.

More By This Author: