BALTIMORE, MD—The national average gas price is expected to decline to $3.22 per gallon in 2025, marking the third consecutive year of lower prices, according to a new forecast by GasBuddy. This represents a continued relief for American drivers, who are projected to spend over $12 billion less on gasoline in 2025 compared to 2024. However, the forecast also highlights potential risks, including geopolitical tensions, potential tariffs, and a change in energy policies.

The decline in gas prices is attributed to expanding global refining capacity and moderating demand. GasBuddy predicts that the national average will reach its lowest point in January at $3.07 per gallon. Prices could peak in April at $3.53 per gallon, driven by seasonal increases in demand and the switch to summer gasoline.

Americans are projected to spend $410.8 billion on gasoline in 2025, down 8% from 2024’s $423.1 billion. Regional variations are expected, with West Coast cities potentially seeing prices return to the mid-$5 per gallon range due to high fuel taxes and other state mandates.

“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.

Despite the positive outlook, De Haan points to geopolitical uncertainties, potential disruptions from extreme weather, and policy shifts under the new administration as potential challenges for fuel markets.

Diesel prices are expected to decrease in 2025 to an average of $3.48 per gallon nationwide. This decrease will benefit industries heavily reliant on diesel, such as freight and agriculture.

This article was written with the assistance of AI and reviewed by a human editor.

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