Average Gas Prices Fade for 7th Straight Week – But is the End in Sight?
by: GasBuddy
Published: January 12, 2026
BOSTON...The nation’s average price of gasoline has fallen 0.8 cents over the last week and stands at $2.73 per gallon, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 17.0 cents from a month ago and is 28.9 cents per gallon lower than a year ago. The national average price of diesel fell 2.3 cents in the last week and stands at $3.475 per gallon.
“Gas prices nationally saw little change over the last week, though several price-cycling states did experience notable jumps,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The good news is that once prices rise in these markets, they often retreat for a week or longer afterward. While the situation in Venezuela has dominated headlines, it’s far too early for any measurable impact on what consumers are paying at the pump — whether prices go up or down — as it would likely take years to see a meaningful increase in oil output there. For now, gas prices remain seasonally lower, but with oil prices inching higher, the national average could soon see some limited upward movement.”
OIL MARKET DYNAMICS
Crude oil prices have remained rangebound, and even as the situation in Venezuela continues to develop, oil prices have only seen modest upside. “Oil prices rose over the last week, with market participants concerned about supply disruptions in Iran and Venezuela,” said Giovanni Staunovo, UBS commodities analyst, via e-mail. “The focus will be on whether those concerns will translate into actual lost barrels; otherwise, the risk premium is likely to fade,” he added. WTI crude was down slightly in early Monday trade, slipping 37 cents to $58.75 per barrel, slightly higher than last Monday’s $57.89 per barrel fetch. Brent crude oil was also down marginally in early trade, posting a 27-cent drop to $63.07 per barrel, up from $61.30 last Monday. Meanwhile, investment bank Goldman Sachs predicted oil prices would struggle this year as a wave of supply creates a market surplus, maintaining its 2026 average price of $50-$54 for WTI crude.
OIL AND REFINED PRODUCT SUPPLIES
The EIA’s Weekly Petroleum Status Report for the week ending January 2, 2026, showed U.S. oil inventories fell by 3.8 million barrels and are about 3% below the seasonal average for this time of year, while the SPR rose 200,000 barrels to 413.5 million. Gasoline inventories rose by 7.7 million barrels and are about 3% above the five-year seasonal average, while distillate inventories rose by 5.6 million barrels and are about 3% below the five-year seasonal average. Refinery utilization was unchanged at 94.7%, while implied gasoline demand, the EIA’s proxy for retail demand, fell 393,000 bpd to 8.170 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists stood at $2.59 per gallon, down 20 cents from last week, followed by $2.69, $2.79, $2.49, and $2.89, rounding out the top five most common prices.
The median U.S. gas price is $2.64 per gallon, down 1 cent from last week and about 9 cents lower than the national average
The top 10% of stations in the country average $3.92 per gallon, while the bottom 10% average $2.14 per gallon.
The states with the lowest average prices: Oklahoma ($2.16), Colorado ($2.30), and Arkansas ($2.31).
The states with the highest average prices: Hawaii ($4.35), California ($4.15), and Washington ($3.69).
Biggest weekly changes: Iowa (+14.5¢), Florida (-14.2¢), Indiana (-13.3¢), Wisconsin (+11.4¢), Oregon (-8.0¢)
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $3.49 per gallon, unchanged from last week, followed by $3.59, $3.39, $3.29, and $2.99, rounding out the top five most common prices.
The median U.S. diesel price is $3.39 per gallon, unchanged from last week and about 8 cents lower than the national average.
Diesel prices at the top 10% of stations in the country average $4.22 per gallon, while the bottom 10% average $2.77 per gallon.
The states with the lowest average diesel prices: Oklahoma ($2.85), Colorado ($2.90), and Texas ($3.00).
The states with the highest average diesel prices: Hawaii ($5.16), California ($4.81), and Washington ($4.57).
Biggest weekly changes: Idaho (-8.7¢), Washington (-8.5¢), Utah (-7.4¢), Missouri (-7.3¢), Indiana (-6.9¢)