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Gas Prices May Have Already Peaked for the Year
By Pete Grieve MONEY RESEARCH COLLECTIVE
After steadily rising for most of 2023, gas prices are reversing course and getting cheaper.
Gas prices have been rising steadily for most of 2023. But gasoline became slightly more affordable in the past week as oil prices declined, and experts say drivers could see prices at the pump drop more going forward.
The national average for a gallon of regular gasoline was $3.64 on Monday, which is 0.8 cents lower than the price a week ago, according to a report from GasBuddy, a price comparison app.
Crude oil, which accounts for about 50% of what you pay for a gallon of gas, was trading at around $78 per barrel on Monday, down roughly 5% in the past week, according to the West Texas Intermediate measure.
Due to lower oil prices, Patrick De Haan, GasBuddy’s head of petroleum analysis, says there’s a “rising possibility” that gas prices have already reached their peak for the spring and summer. On April 20, the cost of the average gallon was $3.69, the highest level recorded so far in 2023.
What experts say
Back in March, De Haan warned drivers that a $4 national average was possible by Memorial Day, but his outlook is more optimistic now. “The odds that the national average will miss the $4 per gallon mark are rising,” he said in the report.
Where will gas prices go from here? Take the following into account when considering any predictions:
- It’s more common for gas prices to peak in May or June, when seasonal trends usually lead to high prices. Last year, average U.S. gas prices reached an all-time high above $5 a gallon in June.
- Americans spend more time on the road during those months as they take advantage of warmer weather, and the annual transition to more expensive summer-grade gasoline also typically brings costs up.
- This year, weaker oil prices could mean that the national average hit its peak a few weeks earlier than normal, according to GasBuddy.
- Gas prices, however, are notoriously hard to forecast, especially in the summer when hurricanes can cause prices to spike.
Where gas prices are lowest (and highest)
Gas prices are currently highest on the West Coast and cheapest in the South, where drivers benefit from their proximity to refineries and lower taxes.
- Average gas prices are highest in California ($4.85), Hawaii ($4.73), Arizona ($4.71), Washington ($4.53) and Nevada ($4.22), according to GasBuddy.
- Prices are lowest in Mississippi ($3.11), Louisiana ($3.22), Arkansas ($3.22), Alabama (3.25) and Texas ($3.26).
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