Gasoline Prices Hit Holiday Lows Providing Relief for US Travelers

Refining Margin Compression

US refineries have maintained high run rates to meet winter distillate demand, resulting in an oversupply of gasoline byproducts. This has compressed refining margins and kept wholesale prices depressed even during the busy holiday travel season.

2026 Retail Outlook

AAA predicts that retail gas prices will likely average $3.00 in 2026. The shift toward higher fuel efficiency and EVs is beginning to structurally weaken gasoline demand, making it difficult for prices to sustain rallies in an oversupplied crude market.