It would be a good idea to start saving a little something extra as it will likely cost more to drive your car in 2022, predicts gas price tracking firm GasBuddy.
In a new study by GasBuddy the nationwide average price for gas is forecast to be $3.41 in 2022. The current price nationwide currently is about $3.29. GasBuddy thinks prices could near $4 a gallon by June as drivers take to the roads for the summer. (Source)
With these rising prices, GasBuddy thinks gas prices could approach $6 a gallon in San Francisco, while hovering around $5.50 in Los Angeles and Sacramento. Right now the average price for gas in California is currently $4.65, per data from AAA.
In total, the average U.S. household is estimated to spend $2,341 next year on gas, which can be compared to $1,977 in 2021. Not surprisingly, in 2020 the average spent was only 1,294 dollars on gas. On a yearly basis, a total of $484.4 billion will be spent on gasoline in the United States, up $76 billion from the $408.4 billion spent in 2021. The increase in total gasoline spend comes due to oil production slowly rising against a sharp increase in global demand as vaccines have allowed some measure of life to return, leading to an imbalance and pushing oil prices higher, according to GasBuddy.
Here's a video that elaborates on gas price expectations in 2022.
Oil experts think there is further room to run in oil prices as the world tries to move past the pandemic. In turn, Gas Buddy predicts that the economy is likely to be supportive of the higher gas prices. So perhaps there is a ray of hope that comes with these expected higher gas prices.
Where do you think gas prices will be in 2022?