Vermont Business Magazine US motorists may get some sticker shock in 2017 and will shell out $52 billion more over the course of the year compared to 2016 as the national yearly average rises to $2.49 per gallon, according to GasBuddy’s 2017 Fuel Price Outlook. Its Vermont Website, vermontgasprices.com is already reporting average gasoline prices this week of $2.39, up 5 cents from last week and 30 cents more than a year ago. Analysts project that gasoline prices will not return to 2016 levels for the foreseeable future.
OPEC in November 2016 agreed to cut production by 1.2 million barrels a day, as has non-OPEC members led by Russia (600,000 barrels a day). This will cut the supply and counter North American production. The result will result in higher costs, the report states.
Aside from gasoline prices that are forecast to be higher than 2016, highlights include:
- $355 billion will be spent on gasoline in the US over the course of the year, $52 billion more than last year. That’s a considerable jump given that motorists saved $39 billion on gasoline in 2016 versus 2015.
- The seasonal switch from ‘winter-blend’ to ‘summer-blend’ as mandated by EPA and the Clean Air Act will bring a spike at the pump later this winter and spring, with the national average gas price rising between 35-60 cents between mid-February and a peak, likely to occur in May.
- $3 a gallon gasoline will be seen in at least the nation’s largest cities: Los Angeles, New York, Chicago, Washington, DC, and Seattle, with a strong possibility of such prices also appearing in a majority of the nation’s 20 largest metros.
"The list of factors being mixed into the yearly forecast has never been larger. This year will see a new administration take over, perhaps the most oil-friendly in some time, and with so many unknowns in regards to policy changes, we’ll be keeping a keen eye on such along with taxation changes. But forecasting fuel prices, especially this year, remains a challenging balance of science and art," says Patrick DeHaan, senior petroleum analyst for GasBuddy.
Additional components that have the potential to weigh on retail gasoline prices include federal and/or state tax changes, Middle East volatility, currency fluctuations, refinery maintenance and/or unscheduled outages, weather events, and shipping / transportation snafus.
"In recent years the 'price at the pump' continues to garner more media attention serving as an economic barometer on Main Street that stirs opinions from a broad swath of consumers from coast to coast," said Gregg Laskoski, senior petroleum analyst. "Forecasting the direction of that 'barometer', the potential trouble-spots and how the trends are likely to translate into dollars and cents affords us the opportunity to share insights that help everyone save money, even when prices are climbing."
GasBuddy is the technology company changing the way more than 60 million consumers find, purchase, and save money on gasoline. Founded in 2000, the original GasBuddy website was a pioneer in crowdsourced information, leveraging technology, big data, and a passionate community that now connects more than 60 million users with real-time, accurate fuel pricing information as well as reliable reviews of gas station amenities and services. The app and website have the most accurate and real-time fuel prices at over 140,000 unique stations in the United States, Canada, and Australia and is the most comprehensive money-saving companion while on the road. GasBuddy is available on all mobile platforms. For more information visit www.gasbuddy.com.
BOSTON – (Jan. 4, 2017) – GasBuddy