Gas prices could reach $4/gal in 2022, analyst says
COLUMBUS, Ga. (WTVM) - Americans may experience more pain at the pump as GasBuddy predicts fuel prices could rise to $4 a gallon in 2022.
The fuel-tracking site is forecasting a national average of $4 a gallon this spring due to pandemic recovery and rising demand before relief arrives later in 2022.
“While Americans are likely to see higher prices in 2022, it’s a sign that the economy continues to recover from COVID-19,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The higher prices go, the stronger the economy is. No one would love to see $4 per gallon gasoline, but we’ll only get there on the back of a very strong economy, so it’s not necessarily bad news.”
GasBuddy says all signs point to gas prices remaining elevated until high prices attract additional oil supply, which will result in lower prices at year’s end.
While some people may point the finger at the president, De Haan says fuel prices would soar regardless of who’s in office.
“President Biden is in the hot seat, taking blame from conservatives who cite the president’s cancellation of the Keystone XL pipeline and issuing a drilling moratorium on federal land as the cause of rising prices. But the truth is we need more crude oil before any concern about pipeline capacity enters the equation, and the Department of Interior has been issuing new permits left and right as of late. We’d have seen a surge in gas prices no matter who was in the Oval Office.”
The national average price of gasoline is forecast to climb early in the year, peaking as high as $4.13 per gallon in June, according to GasBuddy’s 2022 Fuel Price Outlook.
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