Filling up your car or truck will most likely be less expensive in 2023 than it was in 2022.
According to the fuel-savings app GasBuddy, the lowest expected gas prices will be in February, with a national average of $2.99 for a gallon of regular unleaded gasoline. However, the company forecasted that gas prices could reach $4 per gallon during the peak travel season next summer.
Following a turbulent year in which gas prices reached a record-high national average of $5 per gallon, prices have dropped to around $3.06 per gallon this week, according to Patrick De Haan, head of petroleum analysis at GasBuddy, who tweeted on Tuesday. The app from the tech company provides real-time gas price information for over 150,000 gas stations nationwide.
What will the price of gas be in 2023?
According to GasBuddy, gas prices are currently less than $3 per gallon in 26 states.
That could change soon. According to GasBuddy, average gas prices will rise to between $3.79 and $4.19 in June as the summer travel season begins. The average cost per gallon could reach $4.25 in August before falling back to around $3 by the end of the year.
In 2023, gas prices may provide relief.
According to GasBuddy, the national average for 2023 is expected to be around $3.49 per gallon, down from $3.96 in 2022.
Similarly, the Energy Information Administration predicted earlier this month that retail gasoline prices in the United States will average around $3.50 per gallon in 2023.
Why were gas prices in 2022 so high?
After Russia invaded Ukraine in February 2022, gasoline and oil prices began to rise. Prices rose as a result of US and European Union sanctions that hampered Russia’s ability to sell crude oil. Prices fell below the price per gallon before Russia’s invasion in December.
“What we saw in 2022 was simply madness at the nation’s fuel pumps, with records seemingly being set left and right as COVID imbalances persisted and Russia invaded Ukraine,” De Haan predicted. “While lightning striking the same spot twice is highly unlikely, storm clouds over oil and refined markets may persist, and there may still be some spikes as the market remains somewhat tight.”
When were gas prices the highest?
According to AAA, the current national average for regular unleaded gasoline is $3.10, which is two cents lower than a week ago and 45 cents lower than a month ago. The highest-ever average price was $5.016 on June 14, according to AAA.
Russia’s aggression against Ukraine, inflation, and global economic concerns may all contribute to continued volatility in the new year.
“Curveballs are coming from everywhere,” De Haan explained. “However, with prices beginning to moderate as imbalances are resolved, Americans will begin to feel that gas prices are no longer a thorn in their side in 2023.”
