Unlocking Holiday Savings: Story Behind Plummeting Gas Prices

Missoula, MT (KGVO-AM News) - For those hitting the road ahead of Christmas or getting last-minute gifts, Santa has delivered. Patrick De Haan is the head of petroleum analysis at GasBuddy and he said motorists will likely see a national average price of gas of $2.95 per gallon on Christmas, the lowest we’ve seen on Christmas Day since 2020. 

“After waiting years for the national average to fall back to levels more consistent with norms, gasoline prices are finally there, thanks to the Federal Reserve slowing the economy down with higher interest rates, a weak economy in China, the world’s second-largest oil consumer, and the ultimate healer: time,” De Haan said. “It has now been several years since the economy was growing at a blistering pace, sending prices, including fuel, soaring across the globe, causing governments to increase borrowing costs, slowing the global economy, easing demand, which slowed inflation.”

According to De Haan, this holiday season is shaping up to be a gift for American drivers. 

“Gas prices are presenting a stark contrast to the budget-breaking levels we've seen in recent years and a return to what feels like normal for many Americans filling their tanks," said De Haan. "After waiting an exhausting two years for imbalances brought on by Covid and Russia’s war on Ukraine to settle down, we’re finally getting back to normal. Whether you're driving over the river and through the woods to grandmother's house or embarking on a longer holiday road trip, your wallet will feel a bit heavier, especially when utilizing the free GasBuddy app to find cheap gas."

States with the Most/Least Expensive Holiday Gas Prices in 2024

1. Oklahoma ($2.46/gal) | Hawaii ($4.58/gal)
2. Texas ($2.53/gal) | California ($4.31/gal)
3. Mississippi ($2.55/gal) | Washington ($3.93/gal)
4. Arkansas ($2.54/gal) | Nevada ($3.60/gal)
5. Tennessee ($2.62/gal) | Oregon ($3.47/gal)

READ MORE: Montana is 36th in U.S. for Average Gas Prices, Still Dropping

As of Monday, the average price of gas in Montana was $2.77 per gallon. De Haan recommends holiday road trippers always check fuel prices before filling up, especially when crossing state lines where gas taxes can cause prices to fluctuate.