Motorists will be digging a bit deeper for the second straight year as the yearly national average will rise 19 cents versus last year to $2.57 per gallon, the highest since 2014, according to the 2018 Fuel Price Outlook released today by GasBuddy.
Some highlights from GasBuddy’s 2018 Fuel Price Outlook include:
- The nation’s yearly gasoline bill will rise to $364.6 billion dollars, some $25 billion higher than what motorists spent last year as the average household sees their yearly gasoline bill rise to $1,898, up from $1,765 in 2017. Compared to 2016, motorists will be shelling out $62 billion more during the year.
- GasBuddy’s forecast does not expect any record-breaking prices to be set in 2018, and most of the countr ywill see prices peak under $3 per gallon, but unexpected disruptions could push the national average close to $3.
- Metro areas including Chicago, Los Angeles, New York City, Sacramento, San Francisco, Seattle, andWashington D.C. will likely see prices eclipse $3 per gallon. Cities such as Cleveland, Detroit, Miami, Minneapolis, Orlando, St. Louis and Tampa may get within arm’s reach of such prices.
“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,” said Patrick DeHaan, head of petroleum analysis at GasBuddy. “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.”