Gas price forecast predicts fourth straight yearly decline at the pump for 2016
A gasoline price forecast says drivers will continue to spend less at the pump this year than they did in 2015.
Nationwide, drivers will spend about $17 billion less compared to 2015 as prices sag for a fourth straight year to about $2.28 a gallon on average, according to GasBuddy's 2016 Fuel Price Outlook.
Other highlights in a release include:
$325 billion will be spent on gasoline in the U.S. in the year ahead, $17 billion less than last year. Consumers saved $134 billion on gasoline in 2015 versus what was paid for gas in 2014, the report said.
The winter blend to summer blend fuel transition mandated by the Environmental Protection Agency will again deliver a bump in retail gasoline prices this spring, but the peak for 2016 should fall below the 2015 increase to about $2.82 a gallon.
Expect the national average to peak in May in the $2.70s. Most states will experience peak prices in April or May, while some will peak in June.
$3 a gallon gasoline will be hard to find, except for areas of the West Coast.
Diesel's yearly average price will be lower than gasoline for the first time since 2004.
"Looking at the broad range of factors that impact crude oil, forecasting gasoline and market fundamentals are a delicate balance of art and science," said Patrick DeHaan, head petroleum analyst for GasBuddy, which operates websites and apps that report fuel prices. "We believe the global glut of oil and record level for U.S. crude oil inventory will maintain considerable pressure on benchmark crude prices. ... The overall trend of recent years should continue, and that means favorable outcomes for U.S. consumers."
Other factors that have the potential to weigh on retail gasoline prices include federal and/or state tax changes, Middle East volatility, currency fluctuations, refinery maintenance and/or unscheduled outages, weather events and shipping/transportation problems.
This story was originally published January 7, 2016 at 9:42 PM with the headline "Gas price forecast predicts fourth straight yearly decline at the pump for 2016 ."