: 2023 gas prices will average 50 cents less per gallon than 2022, but expect to pay this at the pump come May

by | Dec 27, 2022 | Stock Market

Gasoline prices in 2023 likely won’t repeat 2022’s wild swings that culminated in average pump prices topping $5 a gallon for the first time ever, but prices will creep back above $4 as the typical driving season kicks off in May. That’s the prediction of retail gas app GasBuddy. Analysts for the national price-tracking service on Tuesday issued a recap of 2022’s volatility, stirred by the economic recovery from COVID 19’s worst days and the global market disruptions from Russia’s attack on Ukraine. The app released its 2023 outlook exclusively with CNN, ahead of an expected update on its own site.

The national average for regular gas — a metric closely watched by stock
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and commodities
USO,
-0.06%
investors, American households and Washington’s lawmakers and election strategists — is expected to be $3.49 a gallon for 2023. That’s down roughly 50 cents from the average this year, according to GasBuddy. The U.S. and European Union governments, in particular, have tried to align policy efforts to lessen the severity of energy shortages, while still punishing Russia for its unprovoked attack on its neighbor. Lingering security issues and a prolonged war could undermine the gasoline-price outlook, analysts have said. And over the longer term, a push toward electric vehicles 
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will add to gas-price volatility each year.

“ The national average for regular gas is expected to be $3.49 a gallon for 2023. That’s down roughly 50 cents from the average this year, according to GasBuddy. ”

For certain, 2022 brought a wide band for prices: from a $3-per-gallon national average in early January to a record high of over $5 per gallon in June and back to just below $3 for the Christmas holiday. Plus, that’s just the average and excludes additional market whims and regulations impacting select cities as well as the variance in local taxes. In some U.S. locations, consumers were paying well above $6 a gallon at the peak.

GasBuddy

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