After years of high gas prices, drivers can finally expect some relief at the pump.
GasBuddy’s Head of Petroleum Analysis, Patrick De Haan, expects the upcoming holiday season to be the most affordable for drivers since before the pandemic.
Related: Getting on the road for Thanksgiving will be cheaper this year
Full Video Transcript Below:
CONWAY GITTENS: So you’re talking seasonality. What should we expect from the holiday season. What should drivers expect to pay this year compared to last year?
PATRICK DE HAAN: Well, I think going into the holidays, we’ll probably see one of the most affordable holidays to fill your tank really since the pandemic. In fact, the National average today is already at its lowest level since 2021. We haven’t Sing a Song $3 a gallon national average since that year, and we haven’t seen it during the holidays since the pandemic back in 2020. And I do think with the National average just $0.07 away from falling below $3 a gallon, that remains a very realistic possibility that going into Thanksgiving and Christmas, we could see that national average below that $3 a gallon mark. It’d be the first time in a long time.
CONWAY GITTENS: But if the Federal Reserve continues to lower interest rates, doesn’t that put more money into people’s pockets. So isn’t that likely to cause an increase in demand. What impact do you think that’s going to have on gas prices?
PATRICK DE HAAN: Well, in the long run, I think the Fed is really doing a slow but balanced job at making sure that the economy doesn’t return into super heated mode. So they’re cutting interest rates slowly but gradually. But there’s a lot of policies that we could see shift in January as well that will be keeping an eye on. But for now, I don’t expect the cut in interest rates to really inspire much demand. Again, keep in mind, with temperatures falling, even though Americans may be feeling better about the economy with lower interest rates, they’re not necessarily doing things outside recreational activities as a result of that. So I don’t expect much of an increase in demand this holiday season, although it may be higher than last holiday season and last winter.
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