Gas Prices Hit 5-Year Lows: Ranking The Cheapest States for Fuel

Here is the news your wallet has been waiting for: As of December 23, the national average for a gallon of regular gas sits at $2.858. That isn’t just a random fluctuation; it is the cheapest December average we have seen since 2020. While drivers have grown used to volatility, a combination of low crude oil prices (WTI hovering around $56) and stabilized supply chains has finally brought relief to the pump.

But the relief isn’t evenly distributed. While some drivers in Oklahoma are filling up for pocket change, Californians are still feeling the pinch. We have analyzed the latest data to show you exactly where the deals are and how to maximize your savings.

The Economic Reality: Why Prices Are Dropping

Understanding the “why” helps us predict the “when” for future spikes. The current drop is largely driven by oil supply growth outpacing global demand. Jim Burkhard, Vice President at S&P Global Commodity Insights, forecasted this downward trend earlier this year. His analysis suggests we could see oil prices remaining in the $50–$60 range well into 2026.

This is a pivot from the volatility of previous years caused by geopolitical sanctions and refinery bottlenecks. While we aren’t immune to sudden spikes, the immediate outlook is favorable for the American consumer.

Ranking: The Top 5 States with Cheapest Gas

If you are planning a road trip or looking to relocate, the Midwest and South remain the undisputed kings of cheap fuel. As of late December, here is where your dollar goes the furthest:

1. Oklahoma ($2.34): Currently the nation’s leader in affordability.
2. Arkansas ($2.46): Consistently low taxes and proximity to Gulf Coast refineries keep prices down.
3. Iowa ($2.47): A surprise contender rounding out the top three.
4. Colorado ($2.49): Dropping significantly below the national average.
5. Wisconsin ($2.51): Barely edging out Texas and Mississippi for the fifth spot.

Regional Breakdown: What You Pay Where You Live

National averages are useful, but local reality is what matters. Here is a snapshot of current pricing in key regions.

The South

The South remains affordable, though there is variation between states. Mississippi is averaging a solid $2.52, while Georgia is slightly higher at $2.82 statewide. If you are shopping in Florida, expect to pay around $2.83 per gallonstill below the national threshold but higher than its northern neighbors like South Carolina ($2.539) and Alabama ($2.67).

For those interested in the broader retail landscape while visiting, check out our guide to shopping in Florida to maximize your trip budget.

Texas: A Tale of Three Cities

Texas is massive, and so is the price spread. Houston remains the most affordable major metro at roughly $2.43 per gallon. San Antonio sits in the middle at $2.50, while drivers in Dallas are paying a premium at $2.64. If you are in the area for business, you might also want to explore the wholesale markets in Dallas to offset those higher transport costs.

California: Still the Premium Price Leader

The West Coast operates in a different economy entirely when it comes to fuel. San Diego is currently the most expensive major hub at $4.512. Los Angeles Long Beach isn’t far behind at $4.468. However, if you are headed north, San Jose offers a slight reprieve at $4.123. It’s expensive, but that’s the reality of shopping in California.

Real Prices at the Pump: City Spotlights

Finding the absolute lowest price often requires local street smarts. We’ve verified the current situation in several popular search locations as of late December.

• New York City (Brooklyn): Ignore old reports of $3.29. The Shell stations on Bedford Ave (895 and 1285) are currently reporting cash prices around $2.71. That is surprisingly competitive for shopping in New York City.
• Valdosta, Georgia: The average here is $2.66. Look for stations like Raceway or Shell on St. Augustine Road which often undercut the average.
• Macon, Georgia: This is a hidden gem for cheap fuel. Sam’s Club has been reported as low as $2.37, significantly beating the state average.
• Wichita, Kansas: While the state average is low ($2.478), Wichita itself is slightly higher at $2.68. You might find better deals in the suburbs.

How to Actually Save Money (Beyond Just Driving Less)

Prices are down, but you can still optimize. Here is what the data says for late 2025:

1. Time Your Fill Up

Timing matters. Analysis from 2025 indicates that Monday and Tuesday remain the best days to buy gas, as stations adjust prices after weekend demand fades. Fridays are also decent, but avoid Wednesdays and Thursdays if you canstatistically, these are the most expensive days to fill up.

2. The App Ecosystem Has Changed

Don’t just download every app; choose the one that fits your style.

• For Direct Discounts: GasBuddy launched its ‘Pay with GasBuddy+’ program earlier this year. It guarantees cents off per gallon (up to 25-50 cents for premium members) rather than just showing you prices.
• For Cash Back: Upside is still the leader here. It doesn’t discount the pump price immediately but sends cash back to your account, which you can cash out via PayPal.
• For Navigation: Waze is great for finding a station on your route, but it lacks the direct financial rewards of the other two.

3. Stack Your Rewards

The biggest savings come from “stacking.” Use a credit card with 3-5% cash back on fuel, scan your grocery loyalty card (like Kroger or Safeway points), and use an app like Upside simultaneously. This “triple dip” strategy can effectively lower your cost by $0.30-$0.50 per gallon.

For more tips on finding value across the country, check out our guide to the best street markets in the USA, where saving money is part of the culture.