Gas prices are expected to keep going down in 2024, according to GasBuddy’s annual Fuel Price Outlook.
Patrick De Haan, head of petroleum analysis at GasBuddy, said Thursday that the national average of gasoline and diesel fuel prices will likely decline for the second straight year in 2024. According to GasBuddy’s analysis, the yearly national average will drop 13 cents from $3.51 per gallon this year to $3.38 in 2024.
The national average is currently $3.120 per gallon of regular fuel, according to AAA. That’s down 4 cents from the same time last year and well below the highest recorded average of $5.016 in May 2022.
New York state has seen similar trends, with prices falling steadily since September. The current average in the state is $3.370 per gallon of regular gasoline and the average in Syracuse is $3.381 — both are about 3 cents lower than the same time last year, according to AAA.
GasBuddy says prices could fall below a national average of $3 per gallon this winter, but will potentially rise close to $4 per gallon as summer approaches. Prices will likely peak around Memorial Day as demand for travel increases.
But overall, gas prices will still be about 2% lower than 2023 and more than 12% lower than 2022, according to GasBuddy. Pump costs were up significantly last year due to inflation, post-Covid demand and Russia’s war on Ukraine, but have since fallen off.
“As 2023 fades away, I’m hopeful those $5 and $6 prices for gasoline and diesel will also fade into memory,” De Haan said. “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. Offsetting OPEC+’s production cuts is contributing to the rise of U.S. oil production, which now stands at record levels. Combined with Canada, North American oil production could further stabilize countries that have decided to curb oil production.”
Electric vehicles and the 2024 presidential election could also impact fuel prices in the year ahead, GasBuddy’s report added.