If you've been dreading your trips to the gas station, here's some wonderful news that'll put a smile on your face: fuel prices are heading down, and they're expected to stay that way throughout 2026!

According to an exciting new analysis from GasBuddy, the average price of gas across the United States is forecast to drop to just $2.97 per gallon this year. That's 13 cents less than what drivers paid in 2025, marking the lowest fuel prices Americans have seen since 2020. After years of fluctuating costs at the pump, this welcome relief couldn't come at a better time for families and commuters.

"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," says Patrick De Haan, head of petroleum analysis at GasBuddy. His optimistic assessment reflects a perfect storm of positive factors working in consumers' favor: strong refinery output, lower oil prices, robust crude production, and softer seasonal demand all contributing to the downward trend.

The best part? This isn't just a temporary dip. By the end of 2025, average U.S. prices had already fallen below the $3 mark, and experts predict these affordable rates will continue throughout the year ahead.

What to expect throughout the year is actually quite encouraging. While GasBuddy anticipates some normal seasonal fluctuations—with prices rising to around $3.20 between spring and early summer—the news gets even better after June. Prices are projected to drop to an average of just $2.83 in the latter half of the year, following typical seasonal patterns as fuel demand softens during cooler months.

The savings will vary depending on where you live, but almost everyone will see benefits. Drivers in the Gulf Coast and Southern states can look forward to prices staying comfortably under $3 throughout the entire year. While residents of California, the Northeast, and cities like Chicago may see slightly higher prices, they'll still enjoy significant savings compared to recent years.

Here's what this means for your wallet: the average American household is expected to spend approximately $2,083 on gas in 2026, a noticeable decrease from last year. That's real money back in your pocket—funds that can go toward family outings, savings, or other important expenses.

Diesel drivers haven't been forgotten either! Those operating diesel-powered vehicles will also see relief at the pump, with diesel prices forecast to average $3.55 nationally this year, down from $3.62 in 2025.

This positive trend represents a meaningful shift for American drivers who have weathered years of price uncertainty. Whether you're commuting to work, taking the kids to school, or planning that long-awaited road trip, these lower fuel costs offer both financial relief and peace of mind. The open road is calling, and it's more affordable than it's been in years!