National average gas prices dropped for the fourth straight week, reaching a five-year low, as the Iran-U.S. peace agreement and reopening of Strait of Hormuz promiSe further decreases. However, regional disparities persist with West Coast states paying significantly more than the Midwest.
U.S. gas prices have continued thier downward trend for the fourth consecutive week, with the national average for a gallon of regular gasoline dropping to $2.79 on January 12, 2026, the lowest level in over five years.
This marks a significant decline from the record high of $4.564 per gallon reached on May 21, 2026,which was the highest national average since 2022 and the most expensive under President Donald Trump's administration. Over the past month, fuel costs have decreased by 52 cents per gallon, providing relief to consumers who have been grappling with volatile energy markets.
The recent price drop follows the signing of a peace agreement between the United States and Iran on Wednesday, which includes the reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments. This development is expected to lead to further decreases in gas prices, as it eases supply concerns that have been driving prices upward. however, the unpredictability of gas prices in 2026 has been a constant theme,with expert analyses often inconsistent and unreliable.
While the peace deal offers hope for stability,the situation remains fluid due to ongoing hostilities in the region and uncertainty about future conflicts. regional variations in gas prices remain pronounced, with West Coast states consistently paying the highest prices. california leads with a statewide average of $5.642 per gallon, followed by Hawaii at $5.57,Washington at $5.436, Alaska at $5.042, and Oregon at $4.922. In contrast, the Midwest at present boasts the natiOn's cheapest gas prices, a shift from the previous two years when Gulf Coast states held that distinction.
Indiana has the lowest statewide average at $3.399 per gallon, followed by Texas at $3.493, Oklahoma at $3.508, South Carolina at $3.582, and Tennessee at $3.588. As the summer driving season progresses,the direction of gas prices remains uncertain,with factors such as geopolitical tensions, domestic production, and global demand all playing a role. One certainty is that prices will continue to vary by region, influenced by local refining capacity, taxes, and logistics
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