Drivers are looking forward to more good news regarding gas prices this year.
According to GasBuddy’s latest forecast, gas prices in 2025 are expected to drop for the third consecutive year. The national average for regular gasoline is projected to fall to $3.22 per gallon, a slight decrease from $3.33 in 2024. If these predictions hold true, 2025 would see the lowest annual average gas prices since 2021, reported CNN Business.
This forecasted drop marks a continued recovery from the record-high prices experienced in mid-2022, which peaked above $5 per gallon and played a significant role in the inflationary pressures felt by consumers.
The anticipated decline in gas prices will result in Americans spending an estimated $115 billion less on fuel compared to 2022. This is welcome news for households still feeling the financial aftereffects of high gas prices during the pandemic’s peak. GasBuddy’s head of petroleum analysis, Patrick De Haan, suggests that 2025 will be another year of “slow-but-steady improvement” at the pump. GasBuddy’s analysis also forecasts that the national average price will remain comfortably below $3.50 a gallon for the entire year, even during the busy summer driving season, which has historically seen price spikes, reported CNN.
For the typical American household, the expected fuel expenses in 2025 will amount to approximately $2,252. This is a drop from the record high of $2,715 in 2022, though it remains above pre-COVID levels, which were closer to $1,952 in 2019. […]
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