US gas prices may reach $7 a gallon in some states in 2023: Gasbuddy

  • According to GasBuddy, gas prices could rise as high as $7 per gallon in some US states in 2023.
  • A cold wave across the US and a pick-up in energy demand from China are two key factors that could push prices higher.
  • “2023 won’t be easy for motorists. It could be costly,” Patrick de Haan said in a blogpost.

Brace for higher US gas prices next year due to refinery disruptions as the Asian nation reopens its economy and renewed energy demand from China, according to GasBuddy.

“2023 is not going to be easy for motorists. It could be costly,” said Patrick de Haan, head of petroleum analysis at the firm that tracks fuel costs in its 2023 fuel outlook.

De Haan said the national average price of gas at the pump could be around $4 per gallon in most major US cities by early May next year, up from $3.18 on Friday. According to GasBuddy, gas prices could reach nearly $7 per gallon in the summer of 2023 in cities in the West Coast state of California, such as San Francisco and Los Angeles.

“Basically, curveballs are coming from every direction,” de Haan said. “I don’t think we’ve ever seen this much volatility this year, and it will be a trend that will continue to cause widespread uncertainty over fuel prices into 2023,” he added.

US gas prices hit a high in June, when the national average rose above $5 a gallon, as Russia’s war with Ukraine and the energy crisis in Europe pushed global oil prices higher. The decline came after President Joe Biden began releasing a record amount of crude from US stockpiles in a bid to rein in energy costs and inflation.

According to de Haan, the pullback in gas prices is already starting in the U.S. due to extreme cold weather conditions that have wreaked havoc on refineries and curbed gasoline and diesel production.

That means 2022 will kick off with an annual national average for gasoline of $3.95 per gallon, the highest annual average ever recorded. De Haan tweeted,

De Haan warned in a tweet, “China’s reopening is a wildcard to watch in the coming days/weeks.” “The window may be closing on the ultra-low prices we’ve seen over the past few weeks. As China reopens, oil prices rebound,” he said in a statement. Friday Interview on CNBC,

Overall, however, GasBuddy notes that drivers are projected to spend 10% less on gasoline next year than in 2022, noting that the average household is likely to spend $277 less on fuel.

In GasBuddy’s 2023 Outlook report, de Haan said, “What we saw in 2022 was madness at the nation’s fuel pumps, with records being set left and right as the Covid imbalance persisted and Russia invaded Ukraine.” Was.” “While it is highly unlikely that lightning strikes twice in the same place, the storm clouds over the oil and refined markets may remain, and there may still be some spikes as the markets remain somewhat tight.”

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