Gas Prices Expected to Hit $3.00/Gallon by May

Aly Delp

Aly Delp

Published February 20, 2018 5:32 am
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CLARION, Pa. (EYT) — National gas price tracker GasBuddy is predicting an increase that will usher in some of the highest gas prices since 2014.

Currently, for the second straight week, the national average price of gasoline has decreased, and 47 of 50 states saw their average price of gasoline decrease, including Pennsylvania. Though, Pennsylvania’s average price still ranked among some of the highest. At an average of $2.83 per gallon, Pennsylvania’s gas prices were topped only by Hawaii ($3.42), California ($3.30), Alaska ($2.97), Washington ($2.97), and Nevada ($2.84).

Experts expect the current downward price trend to reverse soon. GasBuddy is predicting that gas prices in much of the nation will peak at just under $3.00/gallon in May, although some major metro areas, including Washington D.C., are predicted to see prices over $3.00/gallon. The nation’s yearly gasoline bill is expected to rise to $364.6 billion dollars, about $25 billion higher than what was spent last year, and the average household will see their yearly gasoline bill rise to $1,898.00, up from $1,765.00 in 2017.

“Many will be quick to ask why we’re expecting higher prices. Ultimately, OPEC bears much of the responsibility for cutting oil production, leading oil inventories to begin 2018 nearly 50 million barrels lower than a year ago. Yet, understanding many factors, including OPEC, fuel taxes, the economy and their impact on supply and demand is integral to providing a thorough and balanced outlook on gas prices for 2018,” Patrick DeHaan, head of petroleum analysis at GasBuddy, explained.

“Even one event can completely change the trajectory of fuel prices for months. Look what impact Hurricane Harvey and Irma had on gas prices and availability. No one could have expected the unexpected, but still, our forecast was less than a dime away from being spot on.”

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