Gas Prices to Drop Again in 2025, Projected at Lowest Since 2021

GasBuddy projects that for the third straight year in 2025, gas prices will drop. The national average for regular gas should reach $3.22 per gallon. From 2024 and the lowest annual average since 2021, this would represent a 10-cent decline.

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Though seasonal variations exist, the national average is expected to stay below $3.50 a gallon all year long, even in late spring and early summer's busiest driving seasons. At its lowest, December prices might be $2.81 per gallon, which would make fuel more reasonably priced for Americans.

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Should these forecasts come true, the average household would spend about $2,250 on gasoline in 2025, so reducing fuel-related costs.

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Analyzers caution, nevertheless, that a number of variables could throw off these estimates. While natural disasters or Middle Eastern geopolitical instability can drive prices higher, President-elect Donald Trump's proposed tariffs on Canada and Mexico might cause supply chain issues.

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Reflecting a consistent drop in fuel prices over recent years, the national average for regular gasoline as of January 1 stood at $3.06 per gallon.

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Though global politics and economics remain a wild card, GasBuddy's perspective gives drivers approaching 2025 some hope. American homes can currently expect still another year of lower gas prices.

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