BAKU, Azerbaijan, January 15. The U.S. Energy Information Administration (EIA) forecasts a continued decline in retail gasoline prices across most regions in 2025 and 2026, Trend reports.
This trend follows decreases in 2023 and 2024, after a surge in prices in 2022.
In 2024, the average retail gasoline price was approximately $3.30 per gallon. The EIA projects a 3% drop in 2025, with prices falling by more than 10 cents per gallon. By 2026, gasoline prices are expected to decline by nearly 20 cents per gallon, marking a 6% annual decrease.
The decline in prices reflects both lower crude oil prices and stable refinery margins. While reduced refinery capacity in 2025 may create upward pressure, this is expected to be offset by declining oil prices. Lower inventories and a slight increase in gasoline consumption are also anticipated.
Regionally, most areas will see price reductions in 2025, with the exception of the Rocky Mountains, where prices are forecast to remain steady. In 2026, gasoline prices in the West Coast are expected to rise, primarily due to the planned closure of Phillips 66’s Los Angeles refinery at the end of 2025. Conversely, prices are forecast to continue dropping in the East Coast, Gulf Coast, Midwest, and Rocky Mountains.
Despite variations, the overall trend indicates a steady easing of gasoline prices nationwide, benefiting U.S. consumers over the next two years.
