DALLAS, TX – GasBuddy has released its 2026 Fuel Price Outlook, forecasting that the national average price of gasoline will fall below three dollars per gallon for the first time since 2020.
According to GasBuddy, the yearly U.S. average price of gasoline in 2026 is projected to be $2.97 per gallon, down 13 cents from the 2025 average of $3.10. If the forecast holds, it would mark the lowest annual average since the COVID-19 pandemic.
Despite the projected decline, GasBuddy cautioned that fuel prices are still expected to experience seasonal volatility due to factors such as refinery maintenance, hurricane season, geopolitical risks and shifts in demand. Prices could briefly rise during the spring, with a peak in the low $3.20 range as refineries switch to summer gasoline blends. Prices are forecast to ease after June, with December averaging about $2.83 per gallon.
Diesel prices are expected to remain higher than gasoline but continue trending downward. GasBuddy projects diesel will average $3.55 per gallon nationally in 2026, down from $3.62 in 2025.
The outlook projects the lowest gasoline prices in the Gulf Coast and Southern regions, while California, the Northeast and Chicago are expected to remain the highest-priced areas, though still below levels seen in 2022.
GasBuddy estimates U.S. motorists will spend about $11 billion less on gasoline in 2026 compared to 2025. Average household gasoline spending is projected at $2,083, slightly lower than last year.
Patrick De Haan, GasBuddy’s head of petroleum analysis, said fuel prices have eased steadily since 2022 as global economic pressures stabilized and new refining capacity came online. He said the trend is expected to continue into 2026 if markets avoid major disruptions.
