In-brief analysis

November 26, 2025

On the Monday before Thanksgiving, the U.S. retail price for regular-grade gasoline averaged $3.06 per gallon (gal), just 2 cents/gal higher than the same time last year. After adjusting for inflation, however, this year marks the lowest average gasoline price for the Monday before the Thanksgiving holiday weekend since 2020, when the pandemic disrupted gasoline demand and travel plans.

The Thanksgiving holiday weekend is one of the heaviest travel times of the year. The American Automobile Association (AAA) forecasts 81.8 million people will travel 50 miles or more for the holiday this year, 1.6 million more than last year. Of the 81.8 million total travelers, AAA expects that 73 million of them will drive.

Retail gasoline prices have declined around 12 cents/gal on average since the end of the summer because of declining crude oil prices and seasonal factors. Gasoline prices are often higher in summer months when gasoline demand is generally higher and when federal and state environmental regulations require the use of summer-grade gasoline, which is more expensive to manufacture.

The falling price of crude oil, which typically accounts for about half of the retail gasoline price, has led to a drop in the price consumers pay for gasoline. The Brent crude oil price, averaging $63.94 per barrel through November 24, is at its lowest monthly average in real terms since December 2020.

U.S. gasoline prices vary regionally, reflecting local supply and demand conditions, state fuel specifications, and state taxes. Retail gasoline prices are usually the highest on the West Coast because of:

• The region’s limited connections with other major refining centers
• Tight local supply and demand conditions
• Higher-than-average state taxes in several West Coast states
• Gasoline specifications for California that make gasoline more costly to produce

West Coast prices on November 24 averaged $4.07/gal, a 5% ($0.19/gal) increase compared with last year. Gasoline imports to the West Coast have been higher than in previous years because of the closure of the Phillips 66 Wilmington refinery in Los Angeles last month, further tightening the regional gasoline supply.

The Rocky Mountain region faces similar logistical constraints as the West Coast, although overall the region has both less supply and demand. Rocky Mountain retail gasoline prices averaged $2.87/gal on November 24, up 2% from 2024.

Gasoline prices are usually the lowest on the Gulf Coast, home to more than half of U.S. refining capacity and lower gasoline taxes than the national average. On November 24, Gulf Coast retail gasoline prices averaged $2.64/gal, about the same as last year.

On the East Coast, which has the most gasoline demand of the five regions, retail gasoline prices averaged $2.99/gal, down 1% from last year. In the Midwest, prices averaged $2.86/gal, similar to last year.

Principal contributor: Alexander de Keyserling