US motorists can anticipate a drop in gas prices throughout 2024, according to a forecast by GasBuddy, a fuel savings site.
The national average for unleaded gas is predicted to decrease to $3.38 per gallon in the lead-up to the 2024 presidential election, down from $3.51 in 2023.
Anticipating a Dip in Gas Prices
The forecast suggests that prices might dip below $3 by the end of winter but are likely to rise again as summer approaches, with major cities seeing prices peak around $4 per gallon.
GasBuddy’s Head of Petroleum Analysis, Patrick De Haan, expressed optimism about moving away from the high gas prices experienced in recent years, particularly during the Russian invasion of Ukraine in 2022.
The invasion led to an average price per gallon of $3.95 and briefly surpassed $6 in California. Despite ongoing conflicts in Europe and the potential broadening of the Israel-Hamas conflict, GasBuddy expects US consumers to save approximately $32 billion on fuel costs in 2024 compared to the previous year.
De Haan acknowledged the impact of global events, including geopolitical tensions and economic uncertainties, on fuel prices.
He emphasized that the fluid state of the global economy, central banks’ fiscal policies to control inflation, and potential interest rate cuts could alter economic directions and fundamentals significantly.
The upcoming presidential election in 2024 and the increasing shift toward electric vehicles are anticipated to influence gas prices.
GasBuddy suggests that these factors, combined with the record-high domestic oil production of 13.2 million barrels per day in November 2023, may contribute to stabilizing countries that have decided to curb oil production.
Read more: Biden Faces Challenges Matching Trump’s Judicial Appointments Ahead Of Election
Declining Gas Prices Challenge Biden’s Emission Targets
While declining gas prices provide relief for household finances amid high inflation, the record-high domestic oil production stands in contrast to the Biden administration’s goal of reducing carbon emissions.
This contradiction highlights the ongoing challenge of balancing economic considerations with environmental objectives in the energy sector.
GasBuddy’s forecast provides a cautiously optimistic outlook for US motorists, anticipating a decrease in gas prices in 2024.
However, the dynamic nature of global events and economic factors underscores the uncertainty in predicting fuel costs.
As the nation navigates these challenges, the delicate balance between economic interests and environmental sustainability remains a key consideration in shaping future energy policies.
Read more: Amazon’s Project Kuiper Clears Key Test, Competing With SpaceX’s Starlink
