It seems like American drivers are going to have some respite while pulling up to the gas station to fill up their tanks this 2026. As claimed by GasBuddy, fuel prices will drop this year.
According to their recently released 2026 Fuel Price Outlook, the average cost of gas across the country is expected to dip under $3 a gallon for the first time since the pandemic hit. Experts estimate the U.S. annual average will land at $2.97 per gallon—that’s a 13-cent drop from 2025’s average of $3.10, making it the cheapest year for drivers since 2020.
Even with prices finally cooling off compared to the spikes we saw a few years ago, GasBuddy warns that 2026 will still see the usual price swings caused by seasonal driving habits, refinery work, hurricanes, and global tensions. While diesel will stay more expensive than regular gas, it’s also expected to come down from recent highs, settling at an average of $3.55 per gallon this year.
What to expect about fuel prices in the US this 2026
- Gas is getting cheaper: The average price for a gallon of gas this year is expected to be $2.97. That is cheaper than last year ($3.10), and it’s the fourth year in a row that prices have gone down.
- Expect a bump in Spring: Prices might jump up a little bit in the spring (to around $3.20) when gas stations switch to summer fuel, but it won’t last forever.
- Prices drop later in the year: After June, gas should get cheaper again. By December, the average price could be down to $2.83.
- Diesel is down too: If you drive a diesel vehicle, you will pay about $3.55 on average, which is less than last year.
- Where you live matters:
- Cheapest gas: The South and Gulf Coast states will likely pay under $3 all year.
- Most expensive gas: California, the Northeast, and Chicago will still be pricey, but not as bad as the record highs from 2022.
- Total savings: Drivers across the U.S. will spend $11 billion less on gas this year compared to last year.
- Family savings: The average family will spend about $2,083 on gas in 2026, which is a bit less than they spent in 2025.
The main reason behind fuel prices
Patrick De Haan, the top analyst at GasBuddy, explained that while the world spent years reeling from the pandemic and the shock of Russia invading Ukraine, conditions have actually been quietly getting better since 2022. He noted that as banks around the world slowed down the economy and more refineries started up, gas prices have dropped year after year—something very few people expected back when the energy market was in total chaos.
That trend is set to continue right into 2026. We aren’t going back to dirt-cheap gas, but for the first time in ages, things are finally looking up for drivers. As long as there aren’t any big surprises in the market, seeing prices stay under $3 a gallon could become the new normal this year.
Not running on fumes anymore
Here is the average prices we expect to see at gas stations on each state. Prices may vary from county to county, so keep that in mind:
State,Forecast Range ($/gal)
- Alabama,$2.55 – $2.79
- Alaska,$3.37 – $3.68
- Arizona,$3.09 – $3.38
- Arkansas,$2.52 – $2.75
- California,$4.19 – $4.66
- Colorado,$2.73 – $2.98
- Connecticut,$2.88 – $3.15
- Delaware,$2.83 – $3.09
- Florida,$2.85 – $3.11
- Georgia,$2.70 – $2.95
- Hawaii,$4.01 – $4.42
- Idaho,$3.05 – $3.33
- Illinois,$3.15 – $3.44
- Indiana,$2.88 – $3.14
- Iowa,$2.69 – $2.93
- Kansas,$2.58 – $2.82
- Kentucky,$2.64 – $2.88
- Louisiana,$2.49 – $2.72
- Maine,$2.86 – $3.12
- Maryland,$2.91 – $3.18
Even though the average cost should stay under $3 in 2026, GasBuddy warns that prices will still jump around a bit depending on the season, the weather, and global events. According to the company’s forecast, we will see prices creep up to roughly $3.20 from spring into early summer, but they are expected to slide back down again to an average of $2.83 once June passes.