Marketplace Morning Report Gas prices are lower, but will that stick around in 2026?
Jan 1, 2026
Elizabeth Troval, a Marketplace reporter who specializes in energy and consumer issues, discusses the surprising drop in gas prices, largely due to a global oil surplus. She predicts that prices may continue to fall into 2026. Meanwhile, Brianna Conley-Saxon, founder of Autophoto, shares her journey of reviving photo booths in NYC, blending nostalgia with innovation. She highlights the cultural significance of these booths and their enduring charm in a digital age.
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Lower Gas Prices Likely Temporary
- Global crude oversupply drove 2025 prices down about 20%, producing December pump prices not seen since 2020.
- Doug Terrason and Elizabeth Troval say gasoline should be 10–15% cheaper in 2026 but will rise again as supply and demand rebalance.
Use Cheap Gas As Short-Term Cushion
- Expect and plan for a near-term boost to consumer spending from cheaper gasoline in 2026.
- Use lower fuel costs as temporary fiscal breathing room while preparing budgets for likely future price increases.
Market Self-Correction Will Push Prices Up
- Low oil prices increase demand and push producers to cut output, which then drives inventories and prices back toward equilibrium.
- Terrason emphasizes that the market's self-correcting dynamics mean current lows won't persist indefinitely.