As December rolls in, drivers across Michigan and much of the United States are finding a welcome surprise at the gas pump: prices have plummeted to levels not seen in more than four years. According to AAA, the average price of regular unleaded gasoline in Michigan fell to $2.96 a gallon on November 30, 2025, marking a 15-cent drop from the previous week. This dip, which followed the busy Thanksgiving travel weekend, is giving motorists a much-needed break as winter approaches.
"Michigan motorists are seeing lower prices at the pump as we enter the month of December," said Adrienne Woodland, a spokesperson for AAA, as reported by the Detroit Free Press. The price drop means that filling a standard 15-gallon tank now costs about $44—$14 less than the peak price in July 2025. For many, it feels like an after-Thanksgiving sale that could stick around for a while.
Some drivers in metro Detroit have been especially lucky. Early Monday, stations in Royal Oak and Dearborn were selling gas for as little as $2.33 and $2.37 per gallon, while an Amoco in Detroit had it at $2.39. Big-box retailers like Costco and Sam’s Club in Madison Heights also offered gas at $2.39, giving bargain hunters plenty of incentive to fill up. These prices, while not universal, highlight the regional differences that are a hallmark of the U.S. fuel market.
Across Michigan, the price landscape varies. Traverse City posted the lowest average at $2.63 per gallon, followed by Marquette at $2.77 and Benton Harbor at $2.88. On the higher end, Ann Arbor drivers paid an average of $3.06, with Jackson not far behind at $3.02. Lansing, meanwhile, hovered just below the $3 mark at $2.97. While these figures might seem like small differences, for families watching every penny, the savings add up over time.
The story isn’t limited to Michigan. Nationwide, the average price of gasoline dropped to just over $3 per gallon as of Thanksgiving weekend, according to AAA data cited by NPR. That’s a milestone, especially at a time when many Americans remain anxious about the overall cost of living. In fact, it’s the lowest national average since the spring of 2021. For millions who hit the road over the holiday, the timing couldn’t have been better.
So, what’s behind this sudden dip? The answer, according to both AAA and industry analysts, is a combination of factors. The biggest driver is the falling price of crude oil, which has been trading below $60 a barrel for West Texas Intermediate. As Patrick De Haan, head of petroleum analysis at GasBuddy, explained to the Detroit Free Press, this drop is due to both easing crude oil costs and additional supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, often referred to as OPEC+.
"The biggest factor in 2025 has been the lower price of crude oil. There has been a lot of crude oil in the market. OPEC+ has been pumping oil into the market. Now you're talking about a time of year when gas demand goes down, and that's keeping prices down," said Aixa Diaz, an AAA spokesperson, in an interview with NPR. In other words, as supply goes up and demand slips (especially after the flurry of Thanksgiving travel), prices naturally fall.
Still, not everyone is seeing the same relief. California, for example, continues to have some of the highest gas prices in the country, averaging $4.56 per gallon as of late November. A recent oil refinery closure in Los Angeles is expected to keep prices high in the region for the foreseeable future. Meanwhile, Oklahoma drivers are paying just over $2.41 per gallon, barely more than half the California average. These wide disparities are a reminder that geography, local taxes, and infrastructure all play a role in what consumers pay at the pump.
The benefits of cheaper gasoline are clear for consumers, but the picture is more complicated for the broader economy. Lower gas prices can put more money in consumers’ pockets, potentially boosting spending elsewhere. However, they also have ripple effects for other sectors. For instance, diesel prices haven’t experienced the same dramatic drop—on average, diesel fuel is about 20 cents per gallon higher than it was a year ago. This is partly due to a reduction in Russian diesel exports and increased winter demand for heating oil. Monte Wiederhold, who runs a trucking company in southern Ohio, told NPR that he’s had to add a fuel surcharge to his freight rates to cover the higher diesel cost, a move that inevitably trickles down to the prices consumers pay for everyday goods.
"I'm a consumer just like you are. When I go to the store, you know, and I buy a gallon of milk or a pound of butter, fuel is in absolutely everything that we buy. You know, if you got it, a truck brought it," Wiederhold said. His words are a reminder that while gas prices may be falling, the cost of moving goods across the country is still a concern—especially in a season when heating oil demand is rising.
The Trump administration has been banking on a domestic energy boom to help keep other prices in check, opening new territory for oil drilling and relaxing environmental restrictions. However, as NPR reports, domestic oil production has only risen modestly from what was already a record high last year. With West Texas crude trading below $60 a barrel, many oil producers say that’s below the breakeven point needed to justify drilling new wells. If oil prices remain this low, the much-anticipated surge in drilling may not materialize, potentially complicating the administration’s economic strategy.
Looking ahead, analysts are cautiously optimistic that the current trend will hold, at least for a while. De Haan of GasBuddy predicts, "We could see the national average spend more of the next four weeks below the $3-per-gallon mark than above it," describing the outlook as increasingly motorist-friendly. Of course, oil markets are notoriously unpredictable—geopolitical tensions, supply chain disruptions, or sudden changes in demand can send prices swinging in either direction.
For now, though, drivers in Michigan and beyond are enjoying a rare reprieve. Whether it’s a quick run to the store or a long drive to visit family, the savings at the pump are a small but meaningful bright spot as the year winds down. And while there’s no guarantee how long these low prices will last, it’s safe to say that, for many, every little bit helps.
