U.S. gas prices expected to drop nationwide in 2025

For American drivers, 2025 is poised to bring continued relief at the pump, marking the third consecutive year of gas price drops. Experts predict the national average per gallon will decline to $3.22 in 2025.

Monthly fluctuations are expected throughout the year, peaking in April at a monthly average of $3.53 per gallon before dropping to $2.89 per gallon in December.

According to Gasbuddy's 2025 Fuel Price Outlook, the projected total U.S. gasoline spending will reach $410.8 billion, an 8% decline from the $423.1 billion Americans spent in 2024.

"While declining fuel prices in 2025 will provide welcome relief to American drivers and businesses, emerging risks could lead to increased volatility," said Patrick De Haan, head of petroleum analysis at GasBuddy.

He continued, "Geopolitical uncertainties, potential disruptions from extreme weather, and policy shifts under the new administration could create challenges for fuel markets. Despite this, expanding global refining capacity and moderating demand are expected to support lower prices for most of the year."

The report shows that the daily average could top out as high as $3.67 per gallon due to the expected increase in seasonal demands and the change to summer gasoline, which occurs at a varied pace coast to coast.

Gas prices will vary across different regions, as high fuel taxes and specific fuel requirements, on top of other state mandates, could potentially send West Coast cities like Los Angeles and San Francisco to higher gas prices back to the range of $5.13 and $5.96 per gallon.

In New Jersey, prices are expected to range between $3.08 and $3.44 per gallon, similar to 2024 levels.

Diesel prices are expected to decline, with a national average of $3.48 per gallon in 2025.

The report highlights the complexities of the fuel markets and the potential impacts they face in 2025 due to a change in leadership, uncertainties over tariffs, and tensions from the ongoing conflict between Russia and Ukraine. The report states, "This uncertainty, as well as the fluid state of the global economy, fiscal policy by central banks to tame inflation, and the timing of interest rate cuts could alter the direction of the economy, shifting fundamentals in significant ways."