As the United States looks ahead to 2026, there’s good news for drivers at the pump. For the first time in several years, the national average price of gasoline is projected to fall below $3 per gallon. According to GasBuddy, a leading fuel price tracking group, the estimated average price for gasoline in 2026 is $2.97 per gallon, marking a 13-cent decrease compared to 2025.
This drop is a welcome change, especially after the volatility of recent years, and signals some financial relief for American households, many of which saw gas prices rise dramatically in previous years.
Overview of Projected Gasoline Prices in the United States for 2026
| Key Information | Details |
|---|---|
| National Average Gas Price | Average gas price in the US is expected to be $2.97 per gallon in 2026. |
| Projected Gas Price in 2026 | GasBuddy forecasts gas prices to average $2.97 per gallon in 2026, which is a 13-cent decrease from 2025. |
| Expected Price Range for States | Gas prices in southern states like Texas and Louisiana will remain below $3, while California and some northeastern states will experience higher prices. |
| Diesel Prices in 2026 | $3.55 per gallon, which is a decrease from $3.62 in 2025. |
| Seasonal Fluctuations | Gas prices will likely increase in spring and early summer, with a forecasted slight increase to $3.20 before dropping to $2.83 in the latter half of the year. |
| Projected Household Gasoline Spend | $2,083 for 2026, significantly lower than the $2,715 spent in 2022. |
| Impact on Automobile Sales | Expect a rise in demand for SUVs and trucks as lower gas prices make larger vehicles more appealing. |
National Trends and Projections
GasBuddy’s latest report also indicates that American households are expected to spend less on gasoline in 2026 than they did in 2025. The estimated total annual gasoline expenditure is $2,083, a significant reduction from $2,715 in 2022.
As GasBuddy’s senior petroleum analyst Patrick De Haan comments, “The downward trend in gasoline prices is a direct result of more stable global oil production, a reduction in demand during off-peak seasons, and lower seasonal consumption overall.”
This change means drivers can expect some financial breathing room as they navigate their budgets through 2026.
Price Variations by State
While the national average for gasoline is projected to fall below $3, prices at the pump will vary significantly across the country. States with lower tax rates, like those in the Gulf Coast and Southern regions, are expected to see prices that remain well below $3 per gallon throughout the year. However, states with higher living costs or those located further from refineries, such as California, parts of the Northeast, and major cities like Chicago, are expected to experience higher prices.
Average Gasoline Prices in Selected States (2026 Projections)
- Alabama: $2.55 – $2.79
- California: $4.19 – $4.66
- Florida: $2.85 – $3.11
- Illinois: $3.15 – $3.44
- Louisiana: $2.49 – $2.72
- New York: $3.30 – $3.60
- Texas: $2.40 – $2.65
- Washington: $3.50 – $3.85
The biggest differences will likely be seen between the states with the lowest prices like Louisiana and Texas and the states with consistently high prices, like California, where the price could soar above $4.00 per gallon in some areas.
As De Haan points out, “State-specific factors, including taxes, refinery capacities, and transportation costs, contribute to the significant variations in gas prices across the nation.”
Diesel Prices Also See Decline
In addition to gasoline, diesel prices are also expected to see some relief in 2026. The national average for diesel is projected to be around $3.55 per gallon, down from $3.62 in 2025. This reduction provides much-needed relief for businesses and drivers who rely on diesel for heavy-duty vehicles, trucks, and commercial fleets.
Seasonal and Geopolitical Volatility
Despite the positive outlook, GasBuddy’s forecast also warns drivers to expect price fluctuations throughout the year.
De Haan explains, “Gasoline prices are typically volatile due to factors such as seasonal demand, weather-related disruptions, and geopolitical risks. For instance, geopolitical events like conflicts in oil-producing countries or unexpected supply disruptions can cause sharp price hikes, even in a year with lower averages overall.”
Seasonal Demand and Price Peaks
According to GasBuddy’s predictions, gasoline prices will likely experience a temporary spike in spring and early summer. As the demand for fuel increases during road trips, vacations, and commuter traffic, prices are expected to rise slightly to around $3.20 per gallon. This seasonal price increase is common as warmer weather prompts more travel. However, GasBuddy forecasts that prices will drop again, reaching $2.83 per gallon in the latter half of the year, which could lead to greater savings for drivers in the fall and winter months.
Impact on Consumer Spending
The reduction in gasoline prices could have a notable effect on household budgets in 2026. With the national average at $2.97 per gallon, families could see a significant decrease in their overall fuel spending compared to previous years.
As financial expert Linda Johnson states, “Lower gas prices mean that households have more disposable income to spend on other goods and services, helping to stimulate the economy. This is particularly important in the aftermath of a period of high inflation.”
In addition to providing relief to American families, lower gas prices could also benefit businesses that rely on transportation costs. From delivery companies to freight businesses, lower fuel costs translate into reduced operational expenses, which may result in lower prices for consumers across various industries.
How Will This Affect the Auto Industry?
The reduced price of gasoline is also likely to have an impact on the automobile market in 2026. Historically, when fuel prices are low, consumers are more likely to purchase larger vehicles such as SUVs and trucks, as the cost of fuel becomes less of a financial burden.
Automobile expert David McAllister notes, “When gasoline prices drop, consumers tend to favor vehicles that consume more fuel, such as trucks and SUVs. We could see a shift in sales patterns as lower fuel costs make larger vehicles more appealing to buyers.”
Looking Ahead: Will Gas Prices Stay Low?
While the outlook for 2026 is largely optimistic, it is impossible to predict with certainty how gasoline prices will behave long-term.
De Haan emphasizes the uncertainty: “While the forecast for 2026 is positive, with prices expected to stay relatively low, any number of global events whether natural disasters, economic shifts, or geopolitical developments could dramatically change the price of gasoline. It’s important for consumers to stay informed about global oil markets and their potential impacts on local prices.”
Final Thought
As gas prices are projected to stay under $3 per gallon for the first time in years, consumers can breathe a sigh of relief. Whether commuting to work or embarking on long-distance travel, American drivers will benefit from lower fuel prices in 2026, giving them more money to spend on other essentials. However, the volatility of gasoline prices means that staying informed about the latest trends and potential price hikes is crucial for maximizing savings.
With gasoline prices expected to stabilize and fall again by the second half of the year, 2026 promises to be a year of economic relief for many drivers.
As McAllister sums up, “It’s a time for consumers to enjoy the benefits of lower fuel prices, but also a reminder that the energy market is always subject to fluctuations.”
FAQs
What is the national average gas price forecast for 2026?
The national average gas price is projected to be $2.97 per gallon.
Which states will have the lowest gas prices in 2026?
States like Texas, Louisiana, and Florida are expected to have some of the lowest prices.
How much will diesel cost in 2026?
Diesel prices are projected to average around $3.55 per gallon in 2026.
What causes the seasonal fluctuation in gas prices?
Gas prices tend to rise during high-demand periods such as summer travel and holiday seasons.
Will gas prices go up in 2026?
Gas prices are expected to rise slightly in spring and early summer but will decrease again afterward.
