U.S. retail price for gasoline declined for the third consecutive year in 2025 to an average of $3.10 per gallon. U.S. Energy Information Administration said Jan. 7 in its Gasoline and Diesel Fuel Update that the largest component of U.S. gasoline price is the price of crude oil, which was lower in 2025 because of concerns of oversupply and a weaker global economic outlook that dampened demand.
U.S. retail gasoline prices have fallen every year since 2022. Last year the price was highest in early April ($3.24 per gallon) and lowest in late December ($2.81/gal). Prices vary regionally, including a low of $2.39 per gallon on the Gulf Coast and a high of $4.32 per gallon on the West Coast.
And in its Short-Term Energy Outlook published Jan. 13, EIA forecasts retail price for a gallon of gasoline to fall again to $2.92 this year before a slight increase to $2.95 in 2027.