Map Shows National Gas Prices During Busy Holiday Travel

What's New

Oklahoma is the state with the lowest gas prices in the country this holiday season, offering much-needed financial relief for drivers during a bustling travel period.

The average price in Oklahoma is $2.46 per gallon—significantly below the national average of $3.04, AAA says.

Newsweek reached out via email to AAA for further comment.

Why It Matters

AAA projects a near-record number of holiday travelers this season, with an estimated 119 million people traveling by road or air. Of these, about 107 million will be driving—a 3 million increase from last year and a new record, compared with pre-pandemic levels in 2019.

At $3.04, the national average gas price marks one of the lowest holiday season levels since the pandemic, according to AAA.

What To Know

As Oklahoma drivers benefit from the nation's lowest gas prices, regional disparities remain stark. States near oil production and refining hubs, such as the Gulf Coast, tend to have lower prices because of reduced transportation costs.

Conversely, states with higher populations, greater demand and elevated operating costs—such as California—report significantly higher fuel prices, with some exceeding $4 per gallon.

Additionally, current trends reflect broader shifts in the oil and gas industry, including stabilized production and moderated crude oil costs following recent geopolitical tensions.

AAA emphasizes that gas prices can vary widely, even within states, as individual stations set prices based on factors like distribution costs and local demand.

"Generally, the further you get from the oil production and refining hub of the Gulf Coast, the more expensive gasoline becomes," AAA spokesperson Andrew Gross told Newsweek.

Oklahoma leads the nation with the lowest gas prices, followed by Mississippi ($2.60), Arkansas ($2.65) and Texas ($2.66). Other low-cost states are Kansas ($2.68), Louisiana ($2.71), Tennessee ($2.72), Missouri ($2.74), Alabama ($2.75) and South Carolina ($2.77).

The most expensive gas markets are found in states far from oil production hubs or with unique market dynamics. Hawaii tops the list at $4.54 per gallon, followed by California ($4.31), Washington ($3.91), Nevada ($3.58) and Oregon ($3.46). Alaska, Illinois, Pennsylvania, New York and Washington, D.C., round out the top 10, with prices ranging from $3.36 to $3.14.

AAA attributes the seasonal drop in gas prices to such factors as reduced demand during colder months and the relatively low cost of oil, which accounts for 55 percent of pump prices. Current crude oil prices remain under $70 per barrel, helping to stabilize prices at levels unseen in years.

"Prices tend to bottom out around the holidays as demand is low due to shorter days and colder temperatures," Gross said.

However, gasoline prices vary significantly not only geographically but also from station to station, as each one sets its price, he said. Factors like distribution costs, local demand and market conditions play a crucial role in these variations.

What People Are Saying

The White House on X (formerly Twitter): "As we head into the holiday season, gas prices are at their lowest point in more than three years—putting money back in the pockets of American families."

Larry Adam, chief investment officer at Raymond James, on X: "Whether you're traveling across the country or just across town this holiday season, lower gas prices are worth celebrating!"

What Happens Next

AAA predicts minimal traffic on Christmas, making it one of the least congested travel days of the holiday season.

As the holiday season ends, analysts expect gas prices to remain relatively stable, with slight fluctuations influenced by regional dynamics and crude oil trends. "We could be heading into a period of relative stability when it comes to pump prices," Gross said.

Here are the best and worst travel times after Monday:

Best Travel Times

Worst Travel Times