NEW YORK: US gasoline prices are the lowest they have been since January and by Christmas could fall below $3 a gallon for the first time since 2021, analysts said, which should boost consumer confidence during the holiday shopping season. The national average price for a gallon of gasoline stood at $3.23 on Tuesday, down 15% since mid-September, data from the motorist group AAA showed. Lower pump prices have given American consumers some relief from inflation and left more cash for discretionary spending.

“Gas prices being down this year have allowed me to invest more into my small business than I could last year,” said Macey Ropes, a tie-dye clothing store owner in Lafayette, Indiana.

Tamer fuel bills have also helped her set aside money for personal shopping and travel around the holidays, she said. Gasoline prices averaged $3.008 a gallon in Indiana on Tuesday, almost half a dollar cheaper than last year.