California gas prices hit lowest levels in years. Here’s what drivers will pay
The new year is starting on a high note for California drivers, according to AAA.
On Thursday, Jan. 8, the automobile association reported that gas prices have dropped to their lowest national average in years, with regular gas averaging about $2.80 per gallon nationwide.
“The last time the national average for a gallon of regular gas was this low was back in March of 2021,” AAA said in its Jan. 8 news release.
While California still has some of the highest gas prices in the country, AAA said, prices in the Golden State are about 15 cents lower than they were around the same time in 2025.
Here’s what drivers in California can expect to pay at the pump:
Why did gas prices drop in California?
Gas prices are falling because there’s a large supply of oil available — and fewer people are filling up, according to AAA.
“Crude oil prices remain relatively unchanged from the end of 2025 and unaffected amid questions about Venezuela’s impact on the oil market,” AAA said in its Jan. 8 news release.
Nationwide, AAA said, drivers are buying less gas.
OPEC+, the group of major oil-producing countries, has said it doesn’t plan to boost production in early 2026 because demand is lower.
New data from the Energy Information Administration also shows gasoline demand dropped, while the overall supply of gas increased.
“Total domestic gasoline supply increased from 234.3 million barrels to 242 million,” AAA said. “Gasoline production decreased last week, averaging 9.0 million barrels per day.”
Oil prices have also dipped recently, with United States crude oil settling just below $56 a barrel.
While oil stockpiles fell a little, supplies are still close to normal for this time of year — which is helping prevent sudden jumps in prices at the pump, according to AAA.
How much does gas cost per gallon in California?
As of Monday, Jan. 12, California had the second-highest gas prices in the nation, behind Hawaii.
Prices for a gallon of regular gas averaged about $4.22 statewide, according to AAA’s Jan. 8 news release.
While gas has dropped to its lowest level in years, it’s still more than a dollar above the national average of $2.80 per gallon.
Around this time in 2025, California drivers were paying about $4.38 per gallon.
Where are the lowest gas prices in California?
According to AAA, the most affordable fuel can primarily be found in Northern California — with the average price for a gallon of regular gas dropping as low as $3.74 in Yuba City and $3.84 in Redding.
As of Monday, Jan. 12, here’s how much a gallon of regular gas cost on average in metropolitan areas around California:
- Bakersfield: $4.31 per gallon
- Chico-Paradise: $3.89
- El Centro: $3.99
- Fresno: $4.13
- Hanford-Corcoran: $4.13
- Los Angeles-Long Beach: $4.37
- Madera-Chowchila: $4.09
- Merced: $3.97
- Modesto: $3.92
- Napa: $4.40
- Oakland: $4.21
- Orange County: $4.24
- Redding: $3.84
- Riverside: $4.13
- Sacramento: $4.07
- Salinas: $4.30
- San Bernardino: $4.15
- San Diego: $4.41
- San Francisco: $4.24
- San Jose: $4.09
- San Luis Obispo-Atascadero-Paso Robles: $4.43
- San Rafael: $4.21
- Santa Barbara-Santa Maria-Lompoc: $4.31
- Santa Cruz-Watsonville: $4.29
- Santa Rosa: $4.26
- Stockton-Lodi: $3.90
- Vallejo-Fairfield: $4.13
- Ventura: $4.33
- Visalia-Tulare-Porterville: $4.20
- Yolo: $4.01
- Yuba City: $3.74
Find cheapest gas stations in my area
GasBuddy is a price-tracking website designed to help motorists find the cheapest gas prices in their areas.
You can search for the most affordable gas stations in your area on the GasBuddy website.
This story was originally published January 12, 2026 at 1:17 PM with the headline "California gas prices hit lowest levels in years. Here’s what drivers will pay."
