After years of sticker shock (or full-on emotional breakdowns) at the pump, drivers may finally get a little breathing room. Gas prices in 2026 are expected to average $2.97 per gallon nationwide, according to a new forecast from GasBuddy — a drop of 13 cents from last year and the lowest annual average since 2020. It’s not a return to bargain-basement fuel prices, but with all the headlines swirling these days, we’re going to let out a little “Yay” for this one.
Why Gas Is Getting Cheaper (For Now)
GasBuddy points to a combination of factors resulting in low gas prices:
- Strong refinery production
- Lower oil prices
- High domestic crude output
- Softer seasonal demand
By the end of 2025, average gas prices had already dipped below $3 in many parts of the country, setting the stage for a cheaper year ahead.
Except Fluctuations
While the yearly average is expected to stay under $3, prices won’t be steady month to month.
GasBuddy expects:
- Prices to rise to around $3.20 in the spring and early summer (when most road trips happen, obviously).
- Prices to fall to about $2.83 after June.
That follows the usual seasonal pattern, when demand climbs during warmer months and eases later in the year.
Where Gas Will Still Be Expensive
As always, location matters.
Drivers in the South and Gulf Coast are expected to see some of the cheapest gas in the country, with many states staying well under $3.
Meanwhile, prices are projected to remain higher in:
- California
- Hawaii
- Parts of the Northeast
- Major metros like Chicago
In California, for example, GasBuddy projects average prices well above $4 per gallon, even with national prices trending lower.
What This Means for Your Budget
GasBuddy estimates households (who don’t drive SUVS and have kids in travel baseball like my family) will spend about $2,083 on gas in 2026, slightly less than last year. It’s not a massive savings, but in a year when many everyday expenses remain elevated, any relief helps.
Diesel drivers may also see modest savings. Diesel prices are expected to average $3.55 per gallon, down from $3.62 in 2025.
More From Cheapism
- These 10 Car Brands Are the Cheapest to Maintain, According to Consumer Reports — Here are the 10 cheapest car brands to maintain, including average maintenance costs between one and five years, six and 10 years, and the overall cost after a decade.
- 12 Car Brands You Should Never Buy Used (and Why) — We’ve compiled a list of 12 car brands and specific models to avoid buying used, so you can save yourself money (and headaches) down the road.
- The Cost of Gas the Year You Were Born — Using data from the Department of Energy, Cheapism determined the average cost of a gallon of gas every year from 1940 through today.
