In a promising update for motorists across the nation, GasBuddy's latest annual Fuel Price Outlook foresees a welcome dip in gasoline and diesel prices throughout 2024. Following two years of elevated gas prices, relief appears on the horizon, offering consumers a break at the pumps. The projection anticipates a decline in the yearly national average, plummeting from $3.51 per gallon this year to an estimated $3.38 in 2024.
According to the outlook, the fluctuation in prices is expected to follow a pattern. They could dip below $3 per gallon as winter sets in, then gradually climb close to $4 per gallon by summer before experiencing a mild decrease. However, potential uncertainties during hurricane season could influence these projections. While some California cities might witness brief spikes above $6 per gallon due to refinery issues, most major U.S. cities are projected to peak at or slightly below $4 per gallon.
The report also highlights that Americans might collectively spend approximately $446.9 billion on gasoline in 2024. On an individual household level, the estimated average yearly spending is predicted to drop by about 2% from 2023, marking a more than 12% reduction compared to 2022. Patrick De Haan, GasBuddy's head of petroleum analysis, expressed optimism about leaving behind the era of $5 and $6 gasoline prices, citing an improving global refining scenario contributing to more stability and lower prices at the pump in the coming year. He acknowledged potential disruptions but remained confident they wouldn't lead to record-high prices, attributing the stability to increased U.S. oil production along with Canada's contribution.
The forecast suggests the peak of the summer driving season, specifically around May, might witness the highest national average, potentially reaching $3.89 per gallon. However, additional uncertainties are expected during hurricane season in late summer. Diesel prices, too, are predicted to decrease incrementally from 2023, with a projected peak at $4.13 per gallon in March 2024. The outlook also hints at potential influences from electric vehicles and the 2024 presidential election on fuel prices in the upcoming year.
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