Gas prices are expected to rise in 2023—but average prices will be lower than in 2022.
Key Details
- Holiday travelers were treated to improved gas prices this year, with the national average nearly dipping below $3 per gallon on Christmas Day.
- Currently, the national average sits at $3.16 per gallon, according to AAA.
- With the war in Ukraine continuing, inflation rising, supply chains healing, and a recession forthcoming, the price of gas going into 2023 is a concern consumers and corporations weigh in their decision-making.
- Gas prices will rise again in 2023 and already have since their dip around the holiday weekend. Even so, the fuel prices app GasBuddy predicts that the new year will average lower than 2022. The average yearly cost is expected to drop by nearly $0.50—from $3.96 to $3.49.
Why it’s News
GasBuddy revealed its predictions in a Wednesday press release, saying that seasonal demands will reflect in the price and that the overall price will cool over the year looks to be an improvement.
The national average could drop below $3 in February before rising again above $4 in the summer months, as early as May. The peak average is expected at $4.19 in June. California cities like Los Angeles and San Fransisco can expect to continue seeing an average above $7 per gallon or higher.
“Continuing improvement in refinery capacity will help alleviate gasoline and diesel prices, though high levels of uncertainty remain amidst Russia’s ongoing war on Ukraine and continuing economic concerns. A $4 national average remains possible ahead of and during the summer driving season,” says GasBuddy.
The company still warned that 2023 will still be an expensive year for gas. The same forces that rose prices to a record high of $5.02 on June 14, 2022, are still in motion, and diesel costs will be even higher. “Curveballs” and “volatility” are to be expected, and the course of events for 2023 is unknown. A recession or a flare-up in the Ukraine War could affect prices. But just going off of current trends, there is reason to believe that there will be a slight improvement.
