The first report of the new year indicates motorists are seeing lower prices at the pumps at both the local and national level.

Average gasoline prices in Modesto have fallen 6.6 cents per gallon in the last week, averaging $3.81/gallon on Jan. 5, according to GasBuddy’s survey of 201 stations in Modesto. Prices in Modesto are 36.0 cents per gallon lower than a month ago and stand 20.3 cents per gallon lower than a year ago. The national average price of diesel has decreased 2.3 cents compared to a week ago and stands at $3.49 per gallon.

According to GasBuddy price reports, the cheapest station in Modesto was priced at $3.45/gallon while the most expensive was $4.89, a difference of $1.44/gallon. The lowest price in the state was $2.49 while the highest was $8.19, a difference of $5.70/gallon.

The national average price of gasoline has fallen 1.2 cents per gallon in the last week, averaging $2.74/gallon. The national average is down 21.2 cents per gallon from a month ago and stands 29.2 cents per gallon lower than a year ago, according to GasBuddy data compiled from more than 11 million weekly price reports covering over 150,000 gas stations across the country.

Historical gasoline prices in Modesto and the national average going back five years include: Jan. 5, 2025: $4.02/gallon (U.S. Average: $3.03); 2024: $4.36 (U.S. Average: $3.08); 2023: $4.04 (U.S. Average: $3.26); 2022: $4.47 (U.S. Average: $3.30); and Jan. 5, 2021: $3.13/gallon (U.S. Average: $2.28/gallon).

Neighboring areas and their current gas prices are: Stockton - $3.75, up 8.2 cents per gallon from last week’s $3.67; Oakland - $4.16, up 2.2 cents from $4.14; and San Jose - $4.04, down 0.6 cents per gallon from last week’s $4.04/gallon.

“Another week, and motorists have been greeted with the sixth straight weekly decline in the national average price of gasoline as seasonality continues to drive trends at the pump,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While more states did see prices rise this week, most of those increases were in ‘price-cycling’ markets, where routine jumps often follow larger declines. Elsewhere, a majority of states saw prices inch lower again. And with GasBuddy’s 2026 Fuel Outlook set for release this week, we’ll soon have a clearer sense of what drivers may face next year— particularly as new developments in Venezuela put fresh attention on the global oil market.”

GasBuddy, a PDI Technologies company, is North America’s trusted fuel savings platform, helping consumers fuel up for less for over 25 years.