Pump Prices Expected to Drop in 2024
WASHINGTON, D.C. - Drivers start your engines. This year experts at GasBuddy predict you will be paying less at the pumps. In GasBuddy's 2024 fuel outlook, they expect an overall drop in gas prices but other influences could impact that.
In the past couple of years, drivers have felt the pain at the pumps. In 2022 drivers dealt with record-high prices. Last year, those prices cooled off a bit.
“We expect the year if you add it up you’ll be paying slightly less at the pump in 2024 as you did in 2023,” said Patrick De Haan with GasBuddy.
Experts at GasBuddy believe the yearly national average will be about 13 cents a gallon lower this year than last year.
“So a little bit of savings,” said De Haan. “We continue to see COVID and Russia’s war in Ukraine grow in the rearview and some of the shockwaves that was brought on by both of those and subside. The Federal Reserve continues to raise interest rates to cool off growth, that has also cooled off gasoline demand that's the reason why prices are lower. That's part of the reason why we anticipate prices to be lower in the year ahead.”
They also contribute the lower costs from the record-high US oil production. There are also unpredictable factors that could impact prices for the better.
“The biggest development would be if Russia decides to end its war in Ukraine,” said De Haan. “If there's a truce or a peace deal. Russia is a major oil producer and their war in Ukraine has had a major impact on the global price of oil and if that is something that fades into the rearview, we could see additional relief there.”
Or for worse.
“Things like the Middle East, the Houthi attacks in the Red Sea are something to keep an eye on,” added De Haan.
Overall, experts said gas prices are very seasonal and will change throughout the year.
“They're lowest in the winter, they start rising in the spring and they’re higher in the summer and they start to fall again in the fall and then they drop back low during the winter,” said De Haan. “Not expecting prices to increase ahead of the election. Normally prices would decline in the fall simply because Americans tend to drive less as temperatures cool off.”