What does the future hold for gas prices? GasBuddy publishes forecast for 2023

(GasBuddy) After a turbulent year for gas prices, 2023 could be some relief on the way. The annual national median price of gas in 2023 is expected to fall nearly 50 cents a gallon in 2023 from 2022’s to $3.49, according to GasBuddy’s Fuel Outlook released last Friday. The continued improvement in refining capacity will help drive down gasoline and diesel prices, although a high level of uncertainty remains amid Russia’s ongoing war with Ukraine and ongoing economic concerns. A national average of $4 remains possible before and during the summer driving season.

Highlights from GasBuddy’s 2023 Fuel Outlook:

  • The national median gas price could cool off earlier in the year as demand remains seasonally weak, followed by a surge beginning in late winter and taking prices into the $4 per gallon region in time for summer. Barring any unexpected challenges, prices should return to normal seasonal fluctuations in 2023, rising in the spring and falling after Labor Day into the fall.
  • Although prices will top about $4 a gallon in most major U.S. cities, areas of California like San Francisco and Los Angeles could see gas prices approaching $7 again in the summer of 2023 if refineries fall under unique regulations Gasoline formulations struggle.
  • Americans will spend an estimated $470.8 billion on gasoline in 2023, down $55 billion from 2022. Estimated annual household gasoline spending will also decrease by $277 to $2,471.
Graphic courtesy of GasBuddy

“2023 will not be a bed of roses for motorists. It could be expensive,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The national average could top $4 a gallon as early as May — and that could last through much of the summer driving season. Basically, curveballs come from all directions. Extreme volatility remains possible, but should be somewhat more subdued in the coming year. I don’t think we’ve ever seen volatility like this year and that will be a trend likely to lead to greater uncertainty about fuel prices into 2023.”

The highest gasoline prices are expected to be seen in June, with an estimated high of up to $4.19 per gallon on average. Diesel prices are forecast to average $4.12 in 2023, start the year at their highest level and then recover to as high as $4.30 per gallon in June.

Download the full 2023 Fuel Outlook here.

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Graphic courtesy of GasBuddy

https://www.wane.com/top-stories/what-does-the-future-hold-for-gas-prices-gasbuddy-releases-2023-forecast/ What does the future hold for gas prices? GasBuddy publishes forecast for 2023

Dais Johnston

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