GasBuddy projects the 2026 U.S. average gas price will be $2.97 per gallon, the lowest since 2020 and 13 cents lower than last year.
The company also forecasts prices could drop to $2.86 per gallon by year’s end. If trends continue, 2026 would mark the fourth consecutive year of price declines.
Potential contributing factors include an economic slowdown, which could reduce demand, as well as changes in environmental regulations and trade policy.
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Patrick De Haan of GasBuddy said Venezuelan oil could have some effect on prices. President Donald Trump has suggested the U.S. may import 30 million to 50 million barrels from Venezuela, but De Haan said the impact would be minimal.
“That 30 to 50 million barrels sounds like a lot, but it’s less than half a day of global oil consumption. It’s a one-time injection that won’t have a major short-term impact on gas prices,” he said.
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Still, De Haan noted prices are beginning the year at favorable levels for drivers.
“Gas prices are starting off the year at the lowest level since 2021, with 40 states below $3 a gallon. Oil prices are at multi-year lows around $56 a barrel, paving the way for slightly lower prices in the weeks ahead,” he said.
