In 2025, U.S. gas prices are expected to be lower due to easing inflation and increased domestic oil production. Prices at the pump dipped in the second half of 2024, with a nationwide average of $2.98 per gallon. The median U.S. price is $2.89, but prices can vary widely by region and state. Hawaii has the highest prices at $4.47 per gallon, while Oklahoma has the lowest at $2.51. GasBuddy predicts that fuel prices will continue to decrease in 2025, with the national average dropping to $3.22 per gallon.
This potential decrease in gas prices could provide relief for consumers who are facing high prices for food and rent. Most economists expect inflation to fall in 2025, but there are concerns that President-elect Donald Trump’s policies could cause prices to rise. Goldman Sachs analysts predict that core inflation will fall to 2.1% by the end of 2025, but tariffs and immigration policies could lead to higher inflation rates. The U.S. is the top producer of crude oil, with an average of 12.9 million barrels per day in 2023.
The U.S. has experienced record-breaking oil production, leading to lower gas prices for consumers. Prices at the pump have decreased in the second half of 2024, with a national average of $2.98 per gallon. GasBuddy predicts that fuel prices will continue to ease in 2025, with the national average dropping to $3.22 per gallon. This decrease in gas prices could provide relief for consumers who are facing increased prices for essential items like food and rent.
Economists expect inflation to fall in 2025, but there are concerns that certain policies, such as tariffs and immigration measures, could lead to higher consumer prices. Goldman Sachs analysts predict that core inflation will reach 2.1% by the end of 2025, but additional factors could cause inflation rates to rise. The U.S. remains the leading producer of crude oil, with record-breaking production levels in 2023.
Overall, motorists can expect modestly lower gas prices in 2025 due to easing inflation and increased domestic oil production. The national average for a gallon of regular gas is forecast to drop to $3.22, providing relief for consumers who are struggling with high prices for necessities. However, uncertainties around potential policy changes could impact inflation rates, so it is important to monitor market trends and economic developments to understand how they may affect gas prices in the future.
