Retail US diesel, gasoline prices projected to decline in 2026

Retail U.S. diesel prices are expected to decline throughout 2026, with the national average falling to $3.41 per gallon by the fourth quarter, according to the Department of Energy. The U.S. average price on Jan. 19 was $3.53.

Gasoline prices will average $2.92 per gallon in 2026, a decrease of 18 cents per gallon, or about 6%, compared with 2025, DOE’s Energy Information Administration said in its latest Short Term Energy Outlook. For 2027, diesel prices will increase, ending the year at $3.57 per gallon, while retail gasoline will average $2.95, which is still below 2025 levels in most regions.