Gas prices will remain high in 2023, but won’t be as volatile as they were in 2022
(The Center Square) — Gas prices won’t be as volatile in 2023 as they were in 2022, but motorists can likely expect high gas prices this year, according to an analysis by GasBuddy.
GasBuddy released its 2023 forecast and projected that gas prices would average $3.49 a gallon.
The past year saw extremes in the U.S. prices of gas at the pump. Gas prices averaged $5.03 per gallon in June 2022, the highest ever, according to the U.S. Energy Information Administration. But by December, gas had dropped to $3.32 a gallon.
“2023 is not going to be a cakewalk for motorists. It could be expensive,” said Patrick De Haan, head of petroleum analysis at GasBuddy, in a news release. “The national average could breach $4 per gallon as early as May – and that’s something that could last through much of the summer driving season. Basically, curveballs are coming from every direction. Extreme amounts of volatility remain possible, but should become slightly more muted in the year ahead. I don’t think we’ve ever seen such an amount of volatility as we saw this year, and that will be a trend that likely continues to lead to wider uncertainty over fuel prices going into 2023.”
“Additionally, as the world continues to navigate Covid recovery, as well as the Russian invasion of Ukraine, a high level of uncertainty is again a factor in 2023, making an accurate forecast very challenging,” the forecast states.
GasBuddy projects total gas spending will be $470.8 billion in 2023, which is less than the $526.3 billion spent in 2022, but far more than $280.0 billion spent in 2020 when the pandemic started.
Gas prices were reportedly rising Jan. 2 across the country. AAA reported the average price of gas was $3.21 per gallon as of Jan. 2, 11 cents higher than a week ago.
Originally published by The Center Square. Republished with permission.
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I am startled by the prices I am seeing at the grocery store & fast food restaurants !
Some of the grocery store prices are simply greater than a 100% increase !
I predict gasoline to reach $6.00/gallon in the Midwest by June.
We shall see.
I am amazed to see new car dealers with no new cars on the lot.
The Chevrolet dealer on the north end of Cedarburg is about out of business
as they have one partial row of new cars whereas they used to have 4 rows.
This is simply amazing & startling to me !