Yule Fuel: Christmas Gas Prices Hit Five-Year Low

Santa is leaving something under the tree for drivers this holiday season. GasBuddy now projects Christmas pump prices will hit a five-year low. "The average is down about four cents in the past week, 21 cents over the past month, 15 cents since this time last year," says Matt McClain, GasBuddy analyst. "We are expecting prices to continue falling, down to about $2.79 a gallon on Christmas Day."

That $2.79 mark for regular unleaded would be the cheapest on Christmas since 2020, during the final year of the first Trump administration. McClain credits ample supply, both domestically and abroad, for keeping crude oil prices down. "OPEC-plus announced they were going to ramp up oil production, and now all of that extra oil is beginning to make its way into the system," he says.

All of that increased production and supply has most analysts predicting a continued drop in gas prices in 2026. But McClain warns there is a new wild card factor, which is the U.S. blockade of Venezuelan oil instituted by President Trump this week. "There's a big asterisk next to it right now, because so far nothing has happened," he tells KTRH. "So for now, we're going to continue the status quo and prices should keep falling...but should something happen with the U.S. and Venezuela, we will have to revisit that."