GasBuddy on Thursday gave drivers another reason to celebrate the new year with the release of its 2024 forecast, predicting falling gas and diesel prices in 2024.
According to a report released by the travel and navigation app, gas prices will drop from an average of $3.51 per gallon in 2023 to an average of $3.38 per gallon.
“As 2023 fades away, I’m hopeful those $5 and $6 prices for gasoline and diesel will also fade into memory,” Patrick De Haan, head of petroleum analysis for GasBuddy, said in a statement. “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.”
In its report, GasBuddy cautioned that the predictions were “not indicative of what will happen but rather what we believe could happen.” Uncertainty stems from several factors, including from the ongoing Russian invasion of Ukraine and violence in the Middle East.
“These situations, as well as the fluid state of the global economy, fiscal policy by central banks to tame inflation, as well as potential interest rate cuts could alter the direction of the economy, shifting fundamentals in significant ways,” according to the company.
De Haan said that despite the uncertainty, he does not expect drivers to see record prices in 2024.
“Offsetting OPEC+’s production cuts is contributing to the rise of U.S. oil production, which now stands at record levels,” he said. “Combined with Canada, North American oil production could further stabilize countries that have decided to curb oil production.”
Prices are expected to climb from an average of $3.11 per gallon in January to a peak of $3.67 in May. From June through August, GasBuddy expects prices to fluctuate before declining in September to $3.46 per gallon.
The price cuts would mark the second year of falling costs after 2022 saw the average price gas at $3.95 per gallon.
“Next year should represent a continued march towards what most Americans would consider normal prices at the pump,” De Haan told CNN. He added, “Gas prices may still be a bit elevated but considering wage growth, it is taking less of Americans’ hard work to pay for that gallon of gasoline.”
Some cities can anticipate seeing higher prices per gallon. GasBuddy predicts that Atlanta could see a daily average price as high as $3.95, while Boston could see a high of $4.05. In Orlando, Florida, prices could reach $4.15, while Seattle was predicted to see a high of $5.25.
GasBuddy expects drivers traveling in Mississippi to see the lowest costs, with the state’s yearly average price predicted to fall as low as $2.81 per gallon. Hawaii is predicted to see the highest prices, where the yearly average could be as high as $4.82 per gallon.
Diesel prices are also expected to fall incrementally from 2023, according to GasBuddy, peaking at $4.13 per gallon in March.
