Gas prices drop dramatically in time for holiday season

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With the holiday season hitting the home stretch, drivers are receiving a bit of a gift with lower gas prices after an otherwise painful year at the pump.

“As 2022 draws to a close, we’ve seen gas prices cut nearly in half in some areas compared to earlier this year – a well needed break from the sky-high prices we faced just six months ago,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

According to GasBuddy, holiday prices this year will be $1.83 per gallon lower than they were just six months ago with the national average price of gas forecast to be $2.98 on Christmas Day. That drop below the $3 per gallon threshold would mark the first such instance in nearly 600 days.

“Finally, things are starting to feel a bit more normal with gas prices far more affordable,” said De Haan. “Americans are saving around $25 per fill-up compared to prices this summer.”

As of the morning of Dec. 21 here in New Jersey, the average price per gallon is $3.26, while the national average checks in at $3.12 per gallon. Those figures are according to AAA.

In its holiday analysis, GasBuddy notes that since peaking at $5 per gallon in June, the national average price of gas has dipped since, falling below its year-ago level on Dec. 9.

In fact, 26 states now have an average price below $3 per gallon, and $2.99 is currently the most common gas price in the country.

“While we’re closing out the year on a positive note, challenges remain that could drive prices up again next spring, so motorists might want to keep their expectations in check and enjoy the sub-$3 gasoline while they can,” said De Haan.