You may need to budget a little bit more for transportation expenses this year — gas prices are going up again.
According to GasBuddy’s 2018 Fuel Price Outlook, the yearly national average will rise 19 cents to $2.57 per gallon, the highest since 2014. The average household’s gasoline bill will rise to $1,898 for the year.
No record-breaking prices are expected to make an appearance in 2018, so most of the country won’t see $3 per gallon gas.
GasBuddy releases gas price forecast for 2018
There are some exceptions. Metro areas including Chicago, Los Angeles, New York City, Sacramento, San Francisco, Seattle and D.C. will likely see prices top $3 per gallon.
Cleveland, Detroit, Miami, Minneapolis, Orlando, St. Louis and Tampa may be get very close to that amount.
GasBuddy forecast: Highest daily average gas price in select cities
- Atlanta: $2.55-$2.75
- Boston: $2.50-$2.70
- Chicago: $2.95-$3.35
- Cleveland: $2.75-$2.95
- Dallas/Ft. Worth: $2.45-$2.70
- Denver: $2.55-$2.80
- Detroit: $2.75-$2.95
- Houston: $2.35-$2.65
- Los Angeles: $3.25-$3.65
- Miami: $2.65-$2.90
- Minneapolis: $2.65-$2.90
- New York City: $2.75-$3.15
- Orlando: $2.65-$2.95
- Philadelphia: $2.75-$3.00
- Phoenix: $2.45-$2.75
- Sacramento: $2.95-$3.45
- San Francisco: $3.55-$3.95
- Seattle: $3.15-$3.45
- St. Louis: $2.75-$2.95
- Tampa: $2.65-$2.95
- Washington, D.C.: $3.10-$3.40
If you’re wondering how accurate GasBuddy’s predictions have been, the forecast called for a yearly average of $2.49 in 2017, but the actual amount was $2.39.
Here’s what Patrick DeHaan, head of petroleum analysis at GasBuddy, said about the forecast:
“Many will be quick to ask why we’re expecting higher prices. Ultimately, OPEC bears much of the responsibility for cutting oil production, leading oil inventories to begin 2018 nearly 50 million barrels lower than a year ago. Yet, understanding many factors, including OPEC, fuel taxes, the economy and their impact on supply and demand is integral to providing a thorough and balanced outlook on gas prices for 2018. Even one event can completely change trajectory of fuel prices for months. Look what impact Hurricane Harvey and Irma had on gas prices and availability. No one could have expected the unexpected, but still, our forecast was less than a dime away from being spot on.”
Use an app to find cheap gas!
GasBuddy says the gap between what gas stations are charging is only getting worse. Some stations might sell gasoline 20 to 40 cents lower or higher than a nearby competitor.
That’s why it’s helpful to use a tool like the GasBuddy app to find the lowest gas prices where you live.
Think about it this way: If you spend thousands of dollars a year filling up your gas tank, a dime or quarter per gallon adds up to hundreds of dollars!