Gas prices this year could be the lowest since 2020, new forecast predicts

The average price of gas around the U.S. this year is expected to dip to $2.97 per gallon, down 13 cents from 2025 — that would be the lowest level since 2020, according to a new analysis by GasBuddy.

At the end of 2025, average U.S. prices at the pump dipped below $3, with GasBuddy citing strong refinery output, lower oil prices, robust crude production and softer seasonal demand as the main reasons behind the decline.

“It’s not a return to ultra-cheap fuel, but for the first time in a long time, the wind is clearly behind drivers’ backs,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement.

Expect a rise, then a dip

While prices are expected to average below $3 in 2026, GasBuddy says drivers should expect some volatility throughout the year due to seasonal demand, weather and geopolitical risks. 

The company, whose app helps drivers save money on fuel, predicts gas prices will edge up to around $3.20 between spring and early summer before falling to an average of $2.83 after June. 

That would mirror normal seasonal fluctuations. Gas prices tend to rise in the spring and fall in the winter, when fuel demand typically weakens. 

What will prices be in my state?

To be sure, the price you see at the pump depends on where you live. For example, prices on the Gulf Coast and South are expected to stay well under $3 for the year, while prices in California, the Northeast and cities like Chicago could be higher, according to GasBuddy.

GasBuddy projects households will spend an average of $2,083 on gas in 2026, down slightly from last year.

Drivers of diesel-powered cars are also expected to see some relief. Diesel prices are forecast to average $3.55 nationally this year, down from $3.62 in 2025, according to GasBuddy.