Posted on 01/06/26
| News Source: FOX45
Baltimore, MD - Jan. 6, 2026 - GasBuddy has released its 2026 Fuel Price Outlook, forecasting the national average price of gas to fall below $3 per gallon for the first time since the COVID-19 pandemic.
The projected yearly average is $2.97 per gallon, a decrease of 13 cents from 2025's average of $3.10, marking the lowest yearly average since 2020.
Despite the anticipated relief, GasBuddy warns of continued volatility due to seasonal demand, refinery maintenance, hurricane season, and geopolitical risks.
Diesel prices are expected to remain higher than gasoline but will ease from recent peaks, averaging $3.55 per gallon for the year.
Key highlights from the outlook include a spring peak where prices may briefly reach the low $3.20s, followed by a decline after June, with December forecasted to average $2.83.
The Gulf Coast and South are expected to maintain prices well under $3, while California, the Northeast, and Chicago remain high-cost areas, though below 2022 highs.
Patrick De Haan, head of petroleum analysis at GasBuddy, said, "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. As global central banks slammed the brakes on an overheated economy and new refining capacity came online, we’ve seen fuel prices ease year after year — a trend few would’ve bet on when chaos ruled the energy market. And 2026 keeps that momentum going. It’s not a return to ultra-cheap fuel, but for the first time in a long time, the wind is clearly behind
Motorists are projected to spend $11 billion less on gasoline in 2026 compared to 2025, with average household spending estimated at $2,083, slightly down from the previous year.