Average Gas Prices Fall for Third Straight Week, Reaching Fresh Multi-Year Low
The nation’s average price of gasoline has fallen 4.5 cents over the last week and stands at $2.85 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 22.0 cents from a month ago and is 12.6 cents per gallon lower than a year ago. The national average price of diesel has fallen 5.3 cents in the last week and stands at $3.618 per gallon.
“For the third straight week, the national average price of gasoline has fallen, once again setting a new multi-year low,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Just ahead of Christmas, the national average stands at its lowest level since March 12, 2021, delivering weekly savings of nearly $400 million compared to this time last year. Gas prices are now lower in a majority of states, and the good news is that the downward trend may continue into the closing innings of 2025, with further declines likely across much of the country. That’s being driven by refineries wrapping up maintenance and boosting output to near summer highs, increasing fuel supply, while additional oil production from OPEC has pressured crude prices lower as well.”
OIL MARKET DYNAMICS
Oil markets have been pressured in recent weeks by a combination of macroeconomic and supply-side developments. Persistent concerns about slowing global demand — particularly from China and parts of Europe — have coincided with expectations that non-OPEC supply growth, led by the U.S., will outpace consumption into early 2026. At the same time, OPEC+ messaging has done little to reassure markets, with traders increasingly skeptical about the group’s ability or willingness to cut production if prices weaken further. A stronger U.S. dollar at times has added headwinds, while geopolitical risks have failed to translate into sustained supply losses, leaving crude prices vulnerable to downside as the market focuses more heavily on fundamentals than headline risk. As of early Monday trade, a barrel of WTI crude oil was down 30 cents to $57.14 per barrel, softening from last week’s $59.55 per barrel level. Brent crude oil was also in the red in early action, down 24 cents to $60.88 per barrel, down from last Monday’s $63.22 fetch.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending on December 5, 2025, showed U.S. oil inventories fell by 1.8 million barrels and are about 4% below the seasonal average for this time of year, while the SPR rose 200,000 barrels to 411.9 million. Gasoline inventories rose by 6.4 million barrels and are about 1% below the five-year seasonal average, while distillate inventories rose by 2.5 million barrels and are about 7% below the five-year seasonal average. Refinery utilization rose 0.4 percentage points to 94.5%, while implied gasoline demand, the EIA’s proxy for retail demand, rose 130,000 bpd to 8.456 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists stood at $2.69 per gallon, down 10 cents from last week, followed by $2.79, $2.89, $2.59, and $2.99, rounding out the top five most common prices.
The median U.S. gas price is $2.73 per gallon, down 6 cents from last week and about 12 cents lower than the national average.
The top 10% of stations in the country average $4.15 per gallon, while the bottom 10% average $2.21 per gallon.
The states with the lowest average prices: Oklahoma ($2.22), Colorado ($2.39), and Texas ($2.41).
The states with the highest average prices: Hawaii ($4.36), California ($4.31), and Washington ($3.95).
Biggest weekly changes: Nevada (-13.2¢), Indiana (-12.6¢), Utah (-12.6¢), Ohio (+11.6¢), Oregon (-11.3¢)
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $3.59 per gallon, unchanged from last week, followed by $3.49, $3.69, $3.79, and $3.39, rounding out the top five most common prices.
The median U.S. diesel price is $3.58 per gallon, down 8 cents from last week and about 4 cents lower than the national average.
Diesel prices at the top 10% of stations in the country average $4.41 per gallon, while the bottom 10% average $2.90 per gallon.
The states with the lowest average diesel prices: Texas ($3.05), Oklahoma ($3.10), and Colorado ($3.12).
The states with the highest average diesel prices: Hawaii ($5.15), California ($4.96), and Washington ($4.79).
Biggest weekly changes: Colorado (-15.2¢), Oklahoma (-13.6¢), Montana (-13.4¢), Iowa (-13.3¢), New Mexico (-12.6¢)
Great rundown of market dynamics here. The point about OPEC+ messaging doing little to reassure traders is key because it signals growing skepticism about whether the cartel can actually enforce cuts when prices slide. Ive noticed this same dynamic play out in past cycles where production discipline breaks down once individual members prioritze revenue over coordination. When refineries hit 94.5% utilization and supply outpaces demand, price pressure becomes almoost inevitable regardless of rhetoric.