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According to a gas expert, people are likely to pay less at the pump during the upcoming year. 

Patrick De Haan, Head of Petroleum Analysis for GasBuddy, is forecasting a third straight year of declining prices at the pump. De Haan said his outlook was based on  key trends in gasoline and diesel prices utilizing specific inputs, potential impacts on production, supply and demand changes and a change in leadership in Washington.  

“With global refining capacity steadily improving, 2025 should see some stability in fuel markets. However, volatility is always lurking — whether from extreme weather, unexpected outages, or geopolitical shocks,” De Haan said. “A warming global economy, particularly in emerging markets, could push demand higher than anticipated, testing the limits of refining capacity. That said, I expect 2025 to bring relative calm compared to the chaos of recent years, with U.S. gas and diesel prices likely to remain well below the record highs of the past.”

GasBuddy projects that the yearly national average for gasoline in 2025 will decline to $3.22 per gallon, down from $3.33 in 2024 and significantly below the record highs of 2022. This decline represents continued relief for American drivers, but comes amid emerging uncertainties surrounding geopolitical tensions, potential tariffs and a change in energy policies that add risk to this year’s forecast. 

Highlights from GasBuddy’s 2025 Fuel Outlook: 

• Lowest Monthly Average in December: The national average price of gasoline is expected to hit its lowest point in December, averaging $2.89 per gallon for the month.

• Springtime Spike: Gas prices could peak in April at a monthly average of $3.53 per gallon, while the daily average could top out as high as $3.67 per gallon, driven by seasonal increases in demand and the change to summer gasoline that occurs coast to coast at a varied pace. 

• Regional Variations: While most major U.S. cities will see peak gas prices around $4 per gallon, West Coast cities such as Los Angeles and San Francisco could return to the mid-$5 per gallon range due to high fuel taxes, unique fuel requirements and other state mandates. 

• Lower Consumer Spending: Americans are expected to spend a combined $410.8 billion on gasoline in 2025, an 8% decrease from 2024’s estimated $423.1 billion. 

“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. “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.” 

Diesel prices are also forecast to decline in 2025, with a projected yearly national average of $3.48 per gallon. This reduction will benefit industries dependent on diesel, such as freight and agriculture, offering some respite from recent cost pressures.