- Gas prices are forecast to fall in 2026 even as other car costs rise.
- Drivers should see lowest average pump prices since the pandemic.
- The average is expected to drop to $2.97 despite political upheaval.
Getting into a new car has never been more expensive, with average transaction prices breaking the $50,000 barrier for the first time in October. Insuring one feels like a monthly punch in the wallet and service and repair costs can really sting. But in the middle of all that, there’s one oddly cheerful bit of news for American drivers. Gas is cheap, and experts say it’s going to get even cheaper during 2026.
Also: More Americans Than Ever Are Paying Over $1,000 In Monthly Car Payments
Industry analysts say gas prices in 2026 will average $2.97, the lowest annual average since 2020. It’s a small mercy, but after years of rising costs everywhere else, it feels like a rare win for anyone who still needs a car to live their life.
That $2.97 figure is the predicted average across the US, and across the year. The actual price you’ll pay depends on when you’re buying it due to traditional seasonal shifts. In June, for example, the average is expected to hit $3.08, while in December it could be just $2.83.
And naturally there are regional differences to factor into the equation. Drivers in California could see prices anywhere between $4.19 and $4.66, while those in Mississippi might pay as little as $2.43 to $2.66. Regional taxes, fuel blends, and transport logistics all factor into the spread.
The $5 Gallon
This comes after a pretty wild few years at the start of the decade. In 2022, gas shot past $5 a gallon for the first time ever after Russia invaded Ukraine and energy markets went haywire. Fuel became a symbol of the whole inflation mess.
Since then prices have steadily drifted down as supply recovered, oil got cheaper, and markets calmed down. General living costs are still expensive, but gas prices kept falling.
More: IRS Raised The Mileage Rate, But You’re Still Getting Less Than In 1971
GasBuddy expects 2026 to be the fourth straight year of falling pump prices. Households are forecast to spend about $2,083 on fuel this year, down sharply from the inflation peak years when spending hit $2,715. For families juggling car payments, insurance, and grocery bills, that difference matters.
It’s not just regular unleaded getting the discount treatment. Even diesel drivers, who have consistently paid more for a gallon than petrol ones, get to share in the good fortune, Gas Buddy predicts. It reckons diesel will drop to $3.55 this year, down from $3.71 in 2025.
Analysts Downplay Impact of Trump’s Venezuela Strike on Oil Markets
A study like this takes a while to put together, and it’s true that the data and predictions were finalized before President Trump decided to go play in Venezuela. But Patrick De Haan, GasBuddy’s head of petroleum analysis, told CNN he saw no reason for recent events in South America to change his forecast.
“In the short term, we see little disruption or shift as a result of the events over the last few days,” he said.
Furthermore, De Haan doesn’t view lower fuel prices as any kind of red flag. Demand, he says, is still solid, and prices are falling because supply is up across the board. That’s largely thanks to OPEC, which ramped up output in 2025 under pressure from the Trump administration.
Still, De Haan warns that sustained low prices could slow domestic drilling and hand more leverage back to OPEC if U.S. output starts slipping.