What to expect at the gas pump this holiday season

Patrick De Haan, Head of Petroleum Analysis at Gas Buddy, joins TheStreet to give a preview at the pump for the upcoming holiday season.

Transcript

00:00What should we expect from the holiday season?

00:03What should drivers expect to pay this year

00:06compared to last year?

00:09Well, I think going into the holidays,

00:10we'll probably see one of the most affordable holidays

00:13to fill your tank really since the pandemic.

00:16In fact, the national average today

00:18is already at its lowest level since 2021.

00:21We haven't seen a sub $3 a gallon national average

00:25since that year,

00:26and we haven't seen it during the holidays

00:28since the pandemic back in 2020.

00:31And I do think with the national average

00:33just 7 cents away from falling below $3 a gallon,

00:37that remains a very realistic possibility

00:40that going into Thanksgiving and Christmas,

00:42we could see that national average

00:44below that $3 a gallon mark.

00:45It'd be the first time in a long time.

00:48But if the Federal Reserve continues to lower interest rates

00:50doesn't that put more money into people's pockets?

00:53So isn't that likely to cause an increase in demand?

00:59What impact do you think that's gonna have on gas prices?

01:02Well, in the long run,

01:04I think the Fed is really doing a slow but balanced job

01:07at making sure that the economy

01:08doesn't return into superheated mode.

01:10So they're cutting interest rates slowly but gradually,

01:14but there's a lot of policies

01:15that we could see shift in January as well

01:18that we'll be keeping an eye on.

01:19But for now, I don't expect the cut in interest rates

01:22to really inspire much demand.

01:24Again, keep in mind with temperatures falling,

01:26even though Americans may be feeling better

01:28about the economy with lower interest rates,

01:31they're not necessarily doing things

01:32outside recreational activities as a result of that.

01:36So I don't expect much of an increase in demand

01:39this holiday season,

01:40although it may be higher than last holiday season

01:43and last winter.