The cost of a gallon of fuel is expected to drop by an average of 13 cents next year, Dallas-based GasBuddy announced on Thursday.
The company projects a drop from $3.51 to $3.38 nationally following two years of above-average gas prices, according to GasBuddy’s annual Fuel Price Outlook. However, as drivers spend more time on the road heading into the summer, the national average could reach $3.89.
The cost of gasoline could further be impacted when hurricane season begins in June.
“As 2023 fades away, I’m hopeful those $5 and $6 prices for gasoline and diesel will also fade into memory,” said Patrick De Haan, head of petroleum analysis for GasBuddy, in a press release.
“The global refining picture continues to improve, providing more capacity and peace of mind that record-setting prices will stay away from the pump in 2024. I anticipate that we’ll still have some volatility, unexpected outages and disruptions, and potentially weather-related issues, but I do not expect it to lead to record prices.”
GasBuddy provides real-time tracking of fuel prices across the country. Its 2024 fuel outlook projects:
- Gas prices could fall below a national average of $3 per gallon this winter before possibly rising to near $4 per gallon.
- Drivers in some West Coast cities could briefly see prices above $6 per gallon, although most major U.S. cities will see prices peak near $4 per gallon.
- Americans are expected to spend nearly $447 billion on gas. Average yearly spending per household will fall to an estimated $2,407 — down 2% from 2023.
- Electric vehicles and the 2024 presidential election may impact fuel prices, with a possible slowdown in the EV transition.
- Memorial Day will be the most expensive holiday at the pump, with the national average price of gas expected to be $3.56-$4.04.
