A report from price comparison app GasBuddy has predicted that the average gallon of gas in the U.S. is projected to cost $3.49 this year, which is almost a 50-cent decrease from the 2022 average of $3.96.
As Money.com points out that global economic conditions, demand for oil and gas, refinery and pipeline operations, federal regulations on fuel blends, taxes, weather and geopolitics, all affect gas prices.
The outlet also explained that oil prices account for nearly 55% of what drivers’ pay for a gallon of gas. “Gas prices usually move by about 25 cents with a $10 swing in the price of oil.”
This possible reprieve comes at a time when living costs are sky-high, and other necessities like food are making a serious dent in consumers’ wallets.
To put things into context, food items like eggs cost nearly $7 per carton on average, whereas last year they were half the price. According to CNN, “food prices are affected by a number of factors, including extreme weather, diseases impacting crops and livestock, supply chain complications and geopolitical unrest including the war in Ukraine. That makes it more difficult for the US government to use tactics like raising interest rates to moderate food prices.”
Regarding gas prices, in some metropolitan areas, prices could see costs soar to $5 per gallon, with the highest being in San Francisco, Los Angeles, Sacramento and Seattle.