AAA says a gallon hits 4-year low as holiday travel starts

Those who hit the road on holiday have relaxed a bit about pumping this year.

The average price of unleaded gasoline in the US has been below $3 per gallon for most of the month. This is the lowest level since 2021. AAA. The association said it was shaped as follows: cheapest December For drivers filling up their tanks back in the 2020 pandemic year.

Fuel prices are down about 7% from a month ago, according to AAA data, and are down nearly 43% from mid-2022 peaks of around $5 per gallon after runaway inflation in the wake of the pandemic.

The latest drop in prices comes as AAA predicts a record more than 122 million Americans will lose will travel at least 50 miles from home AAA found that nearly nine in 10 holiday travelers (or close to 110 million people) are expected to travel by car.

The drop in pump prices could help cushion the impact of ongoing inflation elsewhere during the holiday season.

According to CNBC’s All-America Economic Survey, just over 40 percent of survey respondents said they plan to spend less on the holidays this year; This is an increase of six points compared to the previous year. 46% of those who spent pennies blamed the high cost of goods.

The national average masks wide regional differences, as Hawaii and California recorded average gas prices above $4 on Monday. Meanwhile, in Oklahoma, the price of a gallon is just under $2.30.