GasBuddy recently predicted that 2020 will feature a yearly national average of $2.60 per gallon, representing a 2 cent drop versus 2019, but warns that the national average will rise as much as 75 cents per gallon from a low in February until an eventual peak in May. This may lead to localized gas price hotspots that could lead unsuspecting motorists to pay as much as 15-50 cents more per gallon than competitors.
Some highlights from GasBuddy’s 2020 Fuel Price Outlook include:
- The nation’s yearly gasoline bill will rise to $373 billion dollars, an increase of more than $1 billion from last year as the average household sees their annual gasoline spending rise to $1,935.
- The national average is forecast to rise as much as 75 cents per gallon from a low in early February to a possible peak in May, as the seasonal switch to summer gasoline leads to notable jumps and causes some stations to raise prices much quicker than others, leading to buying opportunities for motorists who compare prices.
- 75 percent of the country’s largest metro areas are at risk for seeing average prices hit $3 per gallon at some point in 2020, including Atlanta, Boston, Chicago, Cleveland, Detroit, Miami, New York City, Philadelphia, Phoenix, and Washington, D.C. while four could see close to or over $4/gal: Los Angeles, Sacramento, San Francisco, and Seattle.
“Never has there been a bigger opportunity to spend less, or to spend more, if you aren’t checking prices before filling up,” said Patrick De Haan, head of petroleum analysis. “In addition, motorists should be feel some comfort that for a sixth straight year, gasoline prices will start with a ‘two’ in most areas amidst a robust economy … which also helps to act as insulation against unpredictable events including production cuts from other nations to keep oil prices from spiraling out of control.”