New year starts with lower gas prices in the U.S.

As the calendar flipped to 2026, drivers are getting some relief at the gas pump, recent data from AAA shows.

The national average price for a gallon of regular gasoline slipped to about $2.83 in the first days of the new year, which is roughly 23 cents cheaper than the same time last year. 

This latest drop continues the trend of fuel prices dipping since late 2025. 

Throughout December, average pump prices fell, going below the $3 per gallon mark, which is a level not seen nationally in almost five years. 

Average gas prices were approaching $3 before easing in the fall. Analysts have said that stronger U.S. oil production and global market conditions contributed to the downward pressure on gasoline costs as holiday travel surged.