Gas prices predicted fall below $3 a gallon

VW independent staff/submitted information

GasBuddy has released its 2026 Fuel Price Outlook and the forecast calls for the yearly national average price of gasoline to fall back below $3 per gallon for the first time since the COVID-19 pandemic. The yearly U.S. average is projected to be $2.97 per gallon, down 13 cents from 2025’s average of $3.102 and marking the lowest yearly average since 2020.

Despite the welcome relief from the highs seen earlier in the decade, GasBuddy expects 2026 to still bring familiar bouts of volatility tied to seasonal demand, refinery maintenance, hurricane season and ongoing geopolitical risks. Diesel prices are forecast to remain elevated relative to gasoline but continue easing from recent peaks, averaging $3.55 per gallon for the year.

Typically, prices are lowest during the winter months and gradually increase through the peak summer travel months before descending in the fall. There are exceptions, including Tuesday’s local price hike. Some stations went from $2.37 or $2.38 to $2.99 per gallon for self-serve regular.

Key highlights from GasBuddy’s 2026 Fuel Outlook:

• 2026 national average: Projected to be $2.97 per gallon, down from $3.10 in 2025 — the fourth straight yearly decline.
• Spring peak: Prices may briefly reach the low $3.20s during the switch to summer gasoline.
• Second-half relief: Prices are likely to fall after June, with December forecast to average $2.83.

• Diesel: Forecast to average $3.55 nationally in 2026, down from $3.62 in 2025.
• Lowest-priced regions: The Gulf Coast and South are expected to stay well under $3.
• Highest-priced regions: California, the Northeast and Chicago remain top-cost areas, but below 2022 highs.
• U.S. gasoline spending: Motorists are projected to spend $11 billion less on gasoline in 2026 compared to 2025.
• Average household spending: Projected at $2,083, down slightly from 2025.

“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,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “If the market avoids major surprises, sustained averages below $3 per gallon could become commonplace in the year ahead.”