What Will Gas Prices Look Like in 2025? GasBuddy Breaks It Down

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STATEWIDE–GasBuddy predicts that 2025 will bring a third consecutive year of lower gas and diesel prices, but there are potential risks.

They project that the national average will decline to $3.22 per gallon, which is a drop from $3.33 in 2024. There are, however, uncertainties surrounding geopolitical tensions, potential tariffs, and a change in energy policies that could add risk and price increases.

“If those tariffs on Canadian oil do pan out, those could have a major impact on gas prices if they pan out,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.

DeHaan expects the yearly average for Indiana to fall somewhere between $3.13 and $3.53.

“They could rise above that if there are any refinery issues too. The closer you get to Kentucky, you’ll probably see lower prices near Evansville. Indiana will probably in the middle of the pack in terms of the statewide average. Generally, we will see northwest Indiana prices surge above the rest of the state. That’s because much of northwest Indiana requires a cleaner version of gasoline in the summer than the rest of the state,” said DeHaan.

One of the most fickle things involving gas prices is supply and demand.

“Those are huge issues. Supply and demand changes every day because of things like weather and economic factors. If the economy slows down, demand slows down,” said DeHaan.

DeHaan thinks gas prices could peak in April because of the usual seasonal increases in demand and the change to summer gasoline that occurs coast to coast at a varied price.

What DeHaan does say is helping keep prices lower is the expanding global refining capacity and the moderating demand.

Americans are expected to spend 8% less on gas in 2025 than they did in 2024.

You can hear the full interview below.