It’s a Christmas miracle: Americans are getting lower gas prices this holiday season.
AAA reports that the national average gasoline prices have reached $2.89/gallon—the lowest average since December 2020. Typically, winter-blend fuel is cheaper compared to summer-blend fuel because it contains cheaper additives (Butane, for example). Fuel is cheaper in the colder months, about 0.10 cents to 0.30 cents cheaper, due to decreased production costs and lower consumer demand. Nevertheless, this is good news for consumers who are weary of holdover inflation from the Biden-Harris years.
Along with this news, it’s reported that more Americans are traveling by car this holiday season. AAA estimates nearly 110 million holiday travelers will drive to Christmas and New Year destinations, citing these lower fuel prices. This continues a national trend of lower gas prices, with October 2025 being an early flash point.
Domestic gas prices are determined by the global price of crude oil. But policies that don’t inhibit oil and gas production are equally helping to ease costs, as well.
The Biden-Harris climate agenda made energy—including gasoline—more expensive. At the height of the Biden-Harris administration, the national average hit $4.88/gal. The fewest offshore leases were approved under the last administration. The Biden-Harris administration kept the Strategic Petroleum Reserve, an emergency reserve, 44% below capacity and enacted 200 rules and regulations to discourage new development opportunities. They deliberately raised royalty rates on federal oil and gas leases under the Inflation Reduction Act (IRA), from 12.5% to 16.67%, to discourage development on multiple-use public lands. Biden-Harris policies also discouraged the approval of new liquified natural gas (LNG) export terminals and the clean-burning fuel itself, to please their climate activist backers.
Globally, oil and gas demand isn’t peaking by 2030, let alone 2050, per the International Energy Agency (IEA). The Trump administration, in response, reversed many of these policies and created a more welcoming environment for oil and gas under its deregulatory agenda. This is also reflected in the private sector, with energy giants like BP refocusing their efforts on production instead of activist climate investing. Moreover, the Biden-era electric vehicle mandate limiting gas-powered cars was revoked, with consumers back in the driver’s seat in their car purchasing decisions.
Gas-powered cars will continue to have staying power in the United States. Even the European Union (EU) is easing regulations on gas-car restrictions as well.
Merry Christmas!