U.S. Drivers Could Get Under $3 Gasoline For Christmas

Drivers in the United States could be getting the gift of even lower gasoline prices this Christmas, according to GasBuddy’s head of petroleum analysis, Patrick De Haan, who has noted the third straight week of gasoline price declines in the United States.

U.S. national gasoline prices fell 12.4 cents from a week ago to $3.52 on Monday, according to GasBuddy data. This is down 22.7 cents from a month ago, although still 14.1 cents per gallon higher than a year ago.

“As millions of Americans hit the road for Thanksgiving, we saw gasoline prices continue dropping coast to coast last week, and a new record was set for the largest single day decline in the national average. In addition, 47 of the nation’s 50 states have seen diesel prices falling as well, providing well-needed relief ahead of the holidays and helping to stem the rise in inflation,” De Haan said in a Monday note, adding that “All the metrics look very positive for motorists as this week is likely to continue seeing falling gasoline prices, with many areas falling to the lowest level since Russia’s invasion of Ukraine in February. It’s entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump.”

The low prices come as China’s zealous Covid lockdowns and city shutdowns erupt in unprecedented protests, comingling with a seasonal demand sluff off in the United States.

GasBuddy demand data showed that U.S. retail gasoline demand fell last week by 5%, in part due to pre-Thanksgiving fill ups. The biggest drop off in retail gasoline demand was seen in Padd 3, with a 7.6% dip.

By Julianne Geiger for Oilprice.com