2026 Could Bring Historic Low Gas Prices For Drivers
Drivers may finally catch a bit of a break at the pump next year.
According to GasBuddy®, a long-time tracker of fuel prices across North America, the average price of gasoline nationwide is expected to dip below $3 per gallon in 2026 for the first time since the COVID-19 pandemic. The company’s newly released 2026 Fuel Price Outlook projects the national average at $2.97 per gallon — about 13 cents lower than the 2025 average of $3.10 and the lowest yearly average since 2020.
While the forecast is good news for motorists, GasBuddy says drivers shouldn’t expect a perfectly smooth ride. Prices will still rise and fall throughout the year due to familiar factors like seasonal travel, refinery maintenance, hurricane season, and ongoing global tensions that can affect energy markets.
Diesel prices are expected to stay higher than gasoline but should continue to ease compared to recent years. GasBuddy predicts diesel will average about $3.55 per gallon in 2026, down slightly from 2025.
GasBuddy’s outlook suggests gas prices could briefly climb into the low $3.20 range this spring as refineries switch over to summer fuel blends. After June, however, prices are expected to trend downward, with December averaging around $2.83 per gallon. That second-half drop could offer welcome relief for families heading into the holiday season.
Regionally, the Gulf Coast and southern states are expected to see the lowest prices, well under $3 per gallon for much of the year. California, the Northeast, and the Chicago area are still projected to have the highest prices in the country, though nowhere near the record highs seen in 2022.
All told, Americans are expected to spend about $11 billion less on gasoline in 2026 than they did in 2025. The average household is projected to spend roughly $2,083 on fuel for the year, slightly less than last year.
Patrick De Haan, head of petroleum analysis at GasBuddy, said the steady easing of fuel prices reflects a global economy that has slowly stabilized after years of disruption.
“The world has spent years recovering from the economic whiplash of the pandemic and the shock of Russia’s invasion of Ukraine, but the situation has been improving quietly since 2022,” De Haan said. He noted that tighter economic policies and new refining capacity have helped bring prices down year after year. “It’s not a return to ultra-cheap fuel, but for the first time in a long time, the wind is clearly behind drivers’ backs.”
If major disruptions can be avoided, De Haan added, drivers may start to see average gas prices below $3 per gallon become more common in the year ahead — a welcome change after years of sticker shock at the pump.