Just like with beef, milk and recently eggs, gasoline to fill up our tanks has been almost prohibitive in the last few years. Any time we watch and old movie and see the characters roll up to a gas station with the fuel prices marked, we can’t help but try to fight a tear when we look at those prices.
For some time know, filling up our tank has filled us in tandem with dread—you could do nothing but look at those numbers go up, and up, and up…it never seemed to end. We might be able to cut up on nutritious food to stay within budget (the taste of animal protein is a faint memory by now for many people, and not for vegan conviction), but for many people, having enough fuel to commute to work and run essencial errands is not something in the “disposable income” category, but a first tier necessity.
However, something changed at the beginning of 2026. Believe it or not, gasoline is now below the psychological price of $3. And what’s even better… it continues to fall in price!
Gasoline drops to pre-inflation prices
At some point, we had to give you some good news. The average price of a gallon of regular gasoline is now over $2.75. A price you probably haven’t seen in years. Only those with a good memory will remember that the last time you could fill up in the United States at that price was in 2021.
The last weeks of 2025 surprised us with a significant drop in fuel prices. It might seem like the result of the typical fluctuation in hydrocarbon market prices, which, as you know, are highly speculative. However, now that we are entering the third week of the year, we can say that the trend has been consolidated. Prices continue to fall. And the finances of many families are now breathing easier.
New York, below $3
This reduction in fuel prices has been more noticeable than ever in New York State. Historically, New York and its surrounding areas have always had the most expensive gasoline in the country. And although the price drop has arrived there a little later than in other states, most New York gas stations now have a “2” at the beginning of the price of regular gasoline.
“I filled up my tank for less than $40 for the first time in years.” That’s what a driver said at a gas station outside Albany, with the excitement of a child on Christmas morning. It’s a phrase that is repeated from Buffalo to Long Island. Although prices may still hover around $2.99 or $3.05, the trend is undeniably downward. In fact, in northern and western regions of the state, prices are already competing directly with the national average, ranging from $2.75 to $2.80.
Why is gasoline falling so much?
When gasoline prices rise, it’s usually bad news. And sometimes, when they fall sharply, it’s bad news too. So, it’s time to ask the big question. What is happening to cause fuel prices to fall so much without warning?
Well, actually, we were warned. Experts were already pointing to this scenario as the most likely for the beginning of 2026. The United States has maintained oil production at record levels. But you see, nobody actually pays attention to good news when they do happen.
So far, so good, but we better keep our fingers crossed each time we pull up to the gas station in the next few weeks. Experts may hammer on about tendencies, stadistics, predictions, and blah blah blah, but the average Joe knows that good news are far and apart. As they like to say, “it’s too good to last.”