Don’t look now, but gasoline prices will likely hit a national average of $4 a gallon next year. This will likely happen in time for the summer driving season.
Gasoline Prices To Average $4 per Gallon
According to GasBuddy, gasoline prices are on track to hit a national average of $4 a gallon. The timing couldn’t be more egregious.
American motorists will likely feel the hit just as schools close. This means more families can hit the road for long trips.
“We could see a national average that flirts with, or in a worst-case scenario, potentially exceeds $4 a gallon,” said Patrick De Haan. De Haan is GasBuddy’s head of petroleum analysis.
The forecast surprisingly runs counter to the current trend of declining gasoline prices. Currently, gasoline prices nationally average $3.29 a gallon. This is 13 cents lower compared to its November 8 peak of $3.42.
Gasoline Prices To Rise Again
GasBuddy predicts that gasoline prices will continue to rise in 2022. Several major refineries in Louisiana and Texas remain down for repairs. Meanwhile, demand keeps soaring.
The combination will cause limited supplies to stretch further. As a result, refinery capacity fell to a six-year low this year.
By May, GasBuddy predicts that gasoline prices will peak and reach a monthly average of $3.79 a gallon. This will slowly drop to $3.57 a month by July.
Eventually, prices can hit $3.01 per gallon as demand cools off. However, any new coronavirus strain outbreak means that all bets are off.
Demand will likely crash as it did during the Delta and Omicron outbreaks. “Anything could change. Tomorrow there could be a ridiculous variant and prices could plummet,” de Haan added.
White House Claims Credit For Lower Gasoline Prices
Meanwhile, the White House took credit for the lower gasoline prices enjoyed by Americans lately. White House chief of staff Ron Klain tweeted the accomplishments last December 23.
“As people head out for the Christmas weekend, gas prices continue to drop — down 25 cents a gallon in many places since @POTUS announced the globally-coordinated strategic petroleum release,” he posted.
Klain referred to the release of 50 million barrels of oil from America’s reserve stash. The White House earlier announced this attempt to influence the drop in gasoline prices.
However, critics pointed out that fuel prices remain 46% higher compared to last year. The average price per gallon last year was $2.25.
Watch the WXYZ Detroit TV Channel 7 video reporting that gas prices might remain high through 2021. Could we see $4 per gallon early next year?
Do you agree that we should get ready for gasoline price that averages $4 per gallon? When do you foresee gas price to lower?
Tell us what you think. Share your comments in the comments section below.