The United States is witnessing the lowest national average gas prices during the Christmas season since 2020, with current figures standing at $2.79. This development comes under the administration of President Donald Trump, who has implemented a series of economic policies aimed at reducing inflation and stimulating job growth, which has, in turn, made prices more affordable for the average American.
In contrast, during the Biden administration, the country experienced record-high gas prices that significantly impacted household budgets. However, since President Trump's inauguration, there has been a notable increase in domestic oil production, contributing to the decline in energy prices.
GasBuddy's petroleum analyst chief, Patrick De Haan, attributes the seasonal drop in gas prices to several factors. "Christmas is often when gas prices settle near the lowest levels of the year, and 2025 is no exception," De Haan stated. He explained that completed refinery maintenance, rising supplies, and the typically lower winter demand collectively help maintain lower prices.
This reduction in gas prices is particularly beneficial during the holiday season, as it supports increased travel activity. The White House highlighted the positive trend in a statement, noting that "Summer gas prices reached their lowest point since 2021, and, inflation-adjusted, are near a 20-year low. Labor Day gas prices also were the cheapest since 2020."
Furthermore, the White House recently reported a continued downward trend, with average gas prices dipping below $3 per gallon in 37 states and even falling below $2.50 per gallon in five states. In some parts of the country, such as Colorado, prices have been observed as low as $1.69 per gallon.
The administration contrasts these figures with those during Biden's term when gas prices soared, even after the strategic reserves were utilized to decrease prices artificially. President Trump's second term has been marked by a strategic pursuit of American energy dominance, which has led to Americans spending the lowest proportion of their disposable income on gas in the last two decades.
In a related economic move, President Trump signed the "One Big Beautiful Bill" in July, which he claims will further strengthen the U.S. economy. Additionally, the President has proposed a radical tariff agenda that could result in Americans receiving up to $2,000 in "dividend" checks, with exclusions for wealthier individuals.
