Drivers can expect lower prices at the pump in 2025: gas prices are expected to fall for a third consecutive year in 2025, acording to GasBuddy's fuel price outlook.
What To Know: GasBuddy's 2025 outlook projects that the national average price for gasoline in 2025 will fall to $3.22 per gallon, down from $3.33 in 2024.
The Tuesday report projects the lowest prices of 2025 will occur in December, averaging $2.89 per gallon for the month, and a spike in the Spring with prices peaking in April at a monthly average of $3.53 per gallon.
Though fuel prices are expected to decline, GasBuddy cautions that consumers could see increased price volatility in the new year. The report points to uncertainties in the geopolitical landscape and policy changes from the incoming Trump administration as potential volatility drivers.
"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," De Haan added.
Why It Matters: Consumers could certainly benefit from lower prices at the pump and tend to spend more money on discretionary items, such as travel and dining out, when fuel costs go down.
Airlines benefit significantly from lower fuel costs, as jet fuel is one of their largest expenses. United Airlines Holdings, Inc. (NYSE:UAL) and JetBlue Airways Corp. (NASDAQ:JBLU) could see improved profit margins due to reduced fuel costs in 2025.
Shipping and freight companies like FedEx Corp. (NYSE:FDX) and United Parcel Service, Inc. (NYSE:UPS) also count fuel as a significant expense and would benefit from lower fuel prices.
- Bill Ackman Sends Fannie Mae, Freddie Mac Stocks Soaring: 'Trump Likes Big Deals'
Photo: Shutterstock
