February 22, 2024

Brighton Journal

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US gas prices could approach $7 a gallon in some states in 2023: GasBuddy

US gas prices could approach $7 a gallon in some states in 2023: GasBuddy
  • Gas prices could rise about $7 a gallon in some US states in 2023, according to GasBuddy.
  • Cold snaps across the US and rebounding energy demand from China are the two main factors that could push prices up.
  • “2023 will not be a cakewalk for motorists. It could be expensive,” Patrick de Haan said in a blog post.

Prepare for higher gas prices in the United States next year due to refinery outages and amid renewed energy demand from China as the Asian country reopens its economy, according to GasBuddy.

“2023 will not be a cakewalk for motorists. It could be costly,” Patrick de Haan, head of petroleum analysis at the company, which tracks fuel costs, said in its data. Fuel forecast for 2023.

De Haan said the national average price for gas at the pump could be around $4 a gallon in most major US cities as early as May next year. $3.18 on Friday. According to GasBuddy, cities on the California West Coast, such as San Francisco and Los Angeles, could see gas prices approaching about $7 a gallon in the summer of 2023.

“Basically, curveballs come from every direction,” said de Haan. “I don’t think we’ve seen as much volatility as we’ve seen this year, and that will be a trend that is likely to continue to increase uncertainty around fuel prices into 2023,” he added.

US gas costs have retreated from the highs reached in June, when the national average topped $5 a gallon as global oil prices soared amid turmoil from Russia’s war with Ukraine and Europe’s energy crisis. The drop came after President Joe Biden began releasing record amounts of crude oil from US reserves to curb energy costs and inflation.

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According to De Haan, a recovery in gas prices has already begun in part because of the extremely cold weather that blanketed the United States, which has wreaked havoc on refineries and restricted the production of gasoline and diesel.

This means that 2022 will close with an annual national average for gasoline of $3.95 per gallon, the highest annual average on record, De Haan tweeted.

“China’s reopening is a must-watch alt in the coming days/weeks,” De Haan warned in a tweet. “Maybe the window is closing on those ultra-low prices that we’ve seen over the past two weeks. With China reopening, oil prices have rebounded,” he said in a statement. Interview this Friday on CNBC.

However, GasBuddy noted that overall, drivers are estimated to spend 10% less on gasoline next year than in 2022, given that the average household is likely to spend $277 less on fuel.

“What we saw in 2022 was just a frenzy at the country’s fuel pumps, with records seemingly left and right as Covid imbalances continue and Russia invades Ukraine,” de Haan said in GasBuddy’s 2023 Outlook report. “While it is extremely unlikely that lightning will strike the same place twice, storm clouds over the oil and refined markets may persist, and some rally could still occur as the market remains somewhat tight.”