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By Giulia Carbonaro
Senior Reporter
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Average nationwide gas prices are expected to fall below $3 per gallon this year, according to GasBuddy’s predictions—hitting the lowest level since 2020, when the pandemic kept millions of Americans at home and off the road.
Why It Matters
Rising inflation during the Joe Biden administration, including higher prices at the pump, played a role in fueling Americans’ frustration against the former president and swaying them in favor of President Donald Trump.
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Despite recent polling showing that U.S. voters have now begun to blame the president for the ongoing affordability crisis, Trump boasted last month that prices are falling “tremendously” under his administration. That is somewhat true of gas prices, though experts say that the president can hardly take credit for it.
"Trump is not the reason for the drop—it's happening to global prices—though I'm sure like any politician, he may try to take credit for the good news, but it's effectively not his credit to take," Patrick De Haan, head of petroleum analysis at GasBuddy, previously told Newsweek.
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What To Know
Gas prices have been falling for six consecutive weeks now, and, as of Wednesday, the average nationwide price of a gallon was around $2.81, according to GasBuddy. The American Automobile Association (AAA) reported a similar average price, at $2.82.
While GasBuddy expects gas prices to continue being volatile through the year, the company believes the national average will be lower by the end of the year than it was in 2025.
The annual nationwide average gas price is projected to be $2.97 per gallon this year, down 13 cents from last year’s average of $3.10, according to GasBuddy’s 2026 forecast.
It would be the lowest annual average for gas prices since 2020, when it was $2.17 per gallon, according to data from the U.S. Energy Information Administration (EIA). It would also mark the fourth consecutive year of annual declines for prices, as the sector continues recovering from post-pandemic market disruptions and expanding global refining capacity.
The company calculated the average by determining a monthly price range, averaging that and then taking the average of all 12 months.
Not only will gas be slightly cheaper than last year, but U.S. households will spend less overall for gas in 2026, according to GasBuddy’s predictions, at $2,083—a slight decline from 2025.
Diesel prices will also be lower than last year, even as they have remained more elevated than gas prices. Diesel is forecast to average $3.55 per gallon this year, down from $3.71 in 2025.
What People Are Saying
Patrick De Haan, head of petroleum analysis at GasBuddy, said in the report: “The world has spent years recovering from the economic whiplash of the pandemic and the shock of Russia’s invasion of Ukraine, but the situation has been improving quietly since 2022.”
He added: “As global central banks slammed the brakes on an overheated economy and new refining capacity came online, we’ve seen fuel prices ease year after year—a trend few would’ve bet on when chaos ruled the energy market. And 2026 keeps that momentum going.
“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. If the market avoids major surprises, sustained averages below $3 per gallon could become commonplace in the year ahead.”
The White House said last month: “So far in President Trump’s second term, Americans [are] on track to spend the lowest amount of their disposable income on gas in the last two decades amid the Trump Administration’s pursuit of American energy dominance.”
What Happens Next
While U.S. drivers can expect generally lower prices at the pump, the average cost of gas will rise briefly into the low $3.20 range in the spring due to increased travel, the switch to the summer blend, and routine refinery maintenance.
Prices will once again soften after June, GasBuddy believes, with December averaging near $2.80 per gallon.
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