Gas Prices Drop Ahead of Holidays, Olean Sees Stagnation

Drivers across New York are experiencing a decline in gas prices as the holiday season approaches. The state average for a gallon of gasoline stands at $3.10, down 2 cents since December 8, according to data from AAA Western and Central New York. This figure also reflects a decrease of approximately 4 cents compared to the same time last year. In contrast, gas prices in Olean have remained relatively high, with most outlets reporting prices just below $3.33 per gallon.

The trend is not exclusive to New York. Nationwide, the average price for a gallon of regular gasoline has dropped to $2.91, marking a decrease of 4 cents since early December. This is the lowest national average observed in four years. Prices have remained below $3 since December 2, a notable milestone not seen since May 2021.

As millions of Americans prepare to travel for the holidays, they will benefit from lower prices than last year, when the national average peaked at $3.04 during the same period. According to GasBuddy, the average price on Christmas Day is projected to hover around $2.79, which is a decrease from the previous year’s price of $3.

Factors Behind the Price Drop

Several factors contribute to this decline in gas prices. The easing of refinery maintenance has led to an increase in gasoline supplies, relieving some of the pricing pressure typically associated with the holiday season. Moreover, the Organization of the Petroleum Exporting Countries (OPEC) has been ramping up oil production throughout 2025, resulting in crude prices reaching multi-year lows as Christmas approaches.

Despite the anticipated surge in holiday travel, winter demand for gasoline remains significantly lower than that of the summer months, which helps stabilize prices. While unanticipated refinery issues or geopolitical tensions could introduce fluctuations, the current climate is considerably more favorable for travelers compared to previous years when economic recovery efforts drove prices higher.

As of this morning, crude oil prices are trading between $57 and $62. The combination of sluggish gas demand and the availability of cheaper-to-produce winter blend gasoline has further contributed to the reduction in prices at the pump.

Diesel and EV Charging Rates

Diesel prices are also following the downward trend. The national average stands at $3.63, down 6 cents from last week, while New York’s average is reported at $3.92, reflecting a decrease of 1 cent over the same period.

Electric vehicle (EV) charging rates have remained stable, with the national average for Level 2 commercial electricity at public EV charging stations holding steady at 39 cents per kilowatt hour. New York’s charging rate is slightly lower at 38 cents.

As consumers prepare for the holiday season, the current pricing landscape offers a welcome reprieve, allowing for more affordable travel.