If you’re kicking yourself for not fueling up when gas prices were under $2 per gallon, don’t worry. You might get another chance to get cheap gas in Iowa.
Iowa, along with a handful of other states, is seeing the effects of an economic behavior called price cycling. That’s why the Hawkeye state saw the highest weekly change in gas prices from the end of December 2025 into January 2026. Prices increased by almost 15 cents in Iowa last week, according to price tracking website GasBuddy.
The average price of gas was $2.52 per gallon in Iowa on Jan. 13. The state’s lowest average price this year was $2.31 recorded on Jan. 5, according to GasBuddy. The change has been more dramatic in Des Moines where prices have gone from $1.95 on Jan. 5 to $2.51 on Jan. 13.
Prices are still lower than 2025, when the mid-January average was $2.89.
Iowa was previously third in the nation for cheap gas prices, said Patrick De Haan, head of petroleum analysis at GasBuddy. But now, he expects to see more volatility in gas prices going forward.
What is price cycling?
In the context of gas prices, price cycling refers to the consumer cost of gas changing as gas stations compete to attract customers. When the price of gas doesn’t turn a profit, that’s when stations will raise prices again.
The big jump in price happens so stations have room to start lowering their prices again, De Haan said. While price cycling does end up pushing prices lower than they’d usually go, that also means prices end up being more volatile. The process makes it more likely to see $0.50 a gallon cost increases.
Price cycling is happening more often in the Midwest, as well as Florida and Indiana, De Haan said.
Will gas prices in Iowa keep going up?
De Haan expects prices to continue going up as price cycling continues. He said Iowa has had relatively cheap gas prices for around a month, when gas prices typically fluctuate every one to two weeks.
When the wholesale price of gas went up, De Haan said prices reset across the state.
Prices are likely to go up by spring when refineries switch from winter- to summer-blend gas, he said. GasBuddy also expects increased travel in the warmer months, which could contribue to higher prices.
Does the Venezuela situation impact gas prices?
In short: no. De Haan said there is massive potential in the years ahead for Venezuela to become an oil superpower, but the country currently represents less than 1% of global supply.
While De Haan doesn’t rule out the political situation as a potential factor in shifting the market, he said there are other, more pressing factors that are influencing gas prices right now.
So, if you want to take advantage of relatively lower gas prices, you’ve got two to four weeks left to fuel up, De Haan said.
Lucia Cheng is a service and trending reporter at the Des Moines Register. Contact her at lcheng@gannett.com or 515-284-8132.
This article originally appeared on Des Moines Register: Gas prices keep going up in Iowa. Here’s why they’re so volatile.
Reporting by Lucia Cheng, Des Moines Register / Des Moines Register
USA TODAY Network via Reuters Connect
