Filling up your vehicle is cheaper than it was a year ago, yet fuel costs are still notably high in certain states as holiday travel ramps up.
The nationwide average for a gallon of gasoline was $3.18 on Dec. 16, roughly 14 cents lower than the same time last year, based on figures from AAA.
Falling global energy demand is helping push oil prices down, which in turn is easing pump prices.
“If this pattern persists, many states could see their average prices drop below $3 per gallon by early next year,” said Andrew Gross, an AAA representative.
A number of states have already fallen below the $3 mark on average, including Texas, Oklahoma, Arkansas and Missouri.
The relief at the pump is welcome after a volatile year for gasoline costs. Prices topped out at just over $5 per gallon in mid-June.
Still, cheaper fuel isn’t uniform across the U.S. Several states continue to face steep per-gallon prices.
Top 5 Cheapest States to Buy Gas
| State | Average Gas Price |
|---|---|
| Texas | $2.65 |
| Oklahoma | $2.69 |
| Arkansas | $2.73 |
| Missouri | $2.75 |
| Mississippi | $2.78 |
Top 5 Most Expensive States to Buy Gas
| State | Average Gas Price |
|---|---|
| Hawaii | $5.12 |
| California | $4.42 |
| Nevada | $4.13 |
| Washington | $3.99 |
| Oregon | $3.88 |
Lower Pump Prices Are a Boost if You’re Driving for the Holidays
Reduced gasoline costs feel like an early holiday present for the nearly 102 million Americans expected to drive to their holiday destinations this season.
Taking a road trip now costs less than it did just a few months ago.
How much less?
- Assume your vehicle averages 25 miles per gallon.
- During Fourth of July weekend, when gas averaged about $4.80 per gallon, a 200-mile trip would have cost around $38.40.
- That identical 200-mile drive around the holidays would run about $25.44 on average now.
Justin Limbach, an engineer from central Nevada, is relocating his family of four across the country in the week between Christmas and New Year’s.
He says cutting fuel costs is one of his main concerns.
“We plan to stop at Raley’s fuel stations so we can rack up gas rewards points,” Limbach said.
He’s also charging all moving-related expenses — gas included — to a credit card that earns 1.5% cash back on purchases.
“I opened it specifically for this move,” he added. “That gives us 18 months interest-free, which helps us spread out payments.”
With increased holiday travel, experts caution drivers to expect congestion and delays.
INRIX, a transportation analytics firm, predicts the busiest travel days will be Dec. 23, 27 and 28, and Jan. 2.
Across the country, commute times could be as much as 25% longer, according to AAA.
To minimize delays, consider traveling early in the morning or outside of peak evening commute hours.
4 Ways to Save Money on Gas
Although sticker shock at the pump is easing, there are still smart ways to cut fuel costs during the holidays.
1. Use Apps to Find the Lowest-Priced Gas
Even with downward pressure on prices, if you’re planning a long drive it pays to know where the cheapest gas is along your route.
Several websites and mobile apps, such as GasBuddy, list the lowest gasoline prices at nearby stations.
Tip: Gas rates can shift dramatically across state lines. To save, avoid fueling up at stations immediately off highways or in dense urban centers.
Those locations often charge a premium compared with stations a bit farther off the main routes.
2. Enroll in Fuel Rewards Programs
Many gas chains and grocery stores nationwide offer discounts or rewards for fuel purchases.
If you’re traveling, research fuel reward programs at the stations and supermarkets along your path and sign up before you go.
GasBuddy also has a program called Pay with GasBuddy. It’s free to join and can save you up to 25 cents per gallon at many national chains.
Upside is another free app that provides cash back on each gallon purchased at participating locations.
3. Pay with a Rewards Credit Card
When you fill up, opt for a credit card that gives cash back or rewards points on gas purchases.
4. Use Cruise Control — Occasionally
Cruise control can be very helpful on long drives. Maintaining a consistent speed with cruise control is proven to improve fuel efficiency, which lowers gas costs.
Pro tip: On hilly routes you may get better fuel economy without cruise control, as the system can downshift unnecessarily and waste fuel.
Rachel Carter is a Certified Educator in Personal Finance and a senior writer for Savinly.
