4 Reasons Why Gas Prices Could Go Up This Summer
“U.S. gasoline prices will indeed see huge swings and regional volatility in 2014,” reported GasBuddy on December 27, “but GasBuddy analysis suggests that when all the final figures are calculated, the average price next year will fall by about 10cts gal from 2013 numbers.” GasBuddy, an organization devoted to the study of gasoline prices, estimates that gasoline prices in the United States could hit an average of $3.399 per gallon in 2014.
If the forecast turns out to be true, the falling prices could be a much-needed tailwind for American consumers. Prices vary by time and place, but H&R Block estimated that the average American spent about $2,100 on gasoline in 2012. That estimate was calculated using a $3.80 per gallon price tag at a use rate of 558 gallons per year. (Fun fact: The average national gas tax is 48 cents per gallon.)
But other market watchers are not as optimistic. The U.S. Energy Information Administration is forecasting average gas prices of $3.57 per gallon between April and September, while auto group AAA is estimating prices in a range between $3.55 and $3.75 per gallon.
Moreover, gas prices have been jumping across the country — and the world, particularly in Iran — as headwinds begin to pick up. Here are a couple of reasons why gas prices in the U.S. could increase over the coming months.