GAS: January Jolly At The Pump As Prices Fall 8 Cents Nationally and 17 Cents In California

The New Year brought goods news for drivers as prices at the pump nationally fell 8 cents and California’s drivers had an extra celebration with a drop in prices of 17 cents according to the daily national price survey from AAA.

As new sources of supply continue to come online globally, drivers saw the price they pay drop from $2.89 in December 2025 drop to $2.81 in January 2026 while in California, the price drop to $4.01 on average roughly 43% higher than the national average.

Californians generally pay the highest prices for energy, and especially gasoline, diesel, and electricity, than any other state in the nation causing nearly every price in the state economy to rise as well.

The Association of Western Employers will continue to track the cost of energy and other key goods along with major economic development news.