Christmas gas prices projected to sit around $3
Gas prices in 15 states have already fallen below $3
GasBuddy head of petroleum analysis Patrick De Haan forecasts the national average for regular gas to drop 32 cents per gallon in December and the price of diesel to retreat even more on 'Varney & Co.'
The national average for a gallon of gasoline is projected to hover around $3 during the Christmas holiday, according to AAA.
Many states, although not all, could even see the average price drop well below $3, AAA spokesperson Andy Gross told FOX Business.
"For the bulk of the country, outside of Washington, California, Nevada, Oregon and Hawaii … gas prices are going to be probably well below $3 a gallon, Gross said.
STEADY GAS PRICE DECLINE THREATENED BY RISING OIL PRICES: AAA
Fifteen states have already seen their averages fall below that mark, he added.
As of Tuesday, the national average for regular gasoline is $3.24 per gallon, down 14 cents from a week ago and 9 cents from a year ago, according to the automobile club. Last Christmas, the national average was $3.28 per gallon, but prices began to spike a few months later as a result of Russia's war on Ukraine. By early June, they reached an all-time high of $5.
Gas pump is filling up a vehicle at a Chevron gas station on Dec. 05, 2022 in Houston, Tex. (Brandon Bell/Getty Images / Getty Images)
US NATIONAL GAS PRICES NOW LOWER THAN THEY WERE A YEAR AGO, AAA SAYS
Afterward, prices started to fall, although they have been in a steady decline since early November. As of Nov. 10, prices have fallen between 10 and 15 cents per week, according to AAA data.
This decline isn't terribly unusual during this time of year, given the bad weather and shorter days, Gross said.
"Seasonal demand is kind of coming into play right now and people just don't drive as much this time of year," Gross said. "The weather's kind of crummy, the days are shorter … and there's also the hybrid working feature."
In fact, demand is "noticeably lower" compared to the same period last year.
According to the Energy Information Administration, drivers only used 8.36 million barrels of gasoline last week, which is 605,000 barrels lower than a year ago.
In addition to demand slipping, the global price of oil has also fallen al lot and the oil markets don't seem "too concerned about a European price cap on Russian oil," either, Gross said.
As of Monday, Montana led with the biggest weekly price drop, down 26 cents. California, Alaska and Nevada followed closely behind with prices falling 25 cents, 24 cents and 21 cents, respectively.
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