Your gas allowance may be a little fatter if you cashed in on those preholiday sales. You’ll need all the savings you can get, now that gas prices are expected to surge in 2018.
According to GasBuddy.com, the yearly national average will rise 19 cents from last year to $2.57 per gallon, the highest since 2014.
So get ready to fork over a lot more Benjamins this year: The average household should see their yearly gasoline bill rise to $1,898, up from $1,765 in 2017. And if you compare this year to 2016, motorists will be shelling out $62 billion more in the next 300+ days, enough to buy a fleet of 670 Boeing 737s. Yikes.
Big Cities, Big Prices
And while this may make us tighten our belts a bit, GasBuddy does not expect any record-breaking prices to be set in 2018, and most of the country will see prices peak under $3 per gallon.
Are you a big-city dweller? You’ll be paying more. Cities such as Chicago, Los Angeles, New York City, San Francisco, Seattle and Washington D.C. will likely see prices eclipse $3 per gallon. Places like Cleveland, Detroit, Miami, Minneapolis, Orlando, St. Louis and Tampa may get close to those prices as well.
Why So Pricey?
The researchers at GasBuddy say a multitude of factors contribute to an increase in gas prices, including OPEC, fuel taxes, the economy and, of course, supply and demand.
Patrick DeHaan, head of petroleum analysis at GasBuddy, says that the gap between what stations are charging is also to blame.
“It’s become nothing short of crazy how one station might sell gasoline 20-40 cents lower or higher than a nearby competitor. In addition to GasBuddy data showing spreads have risen to record levels, I’ve heard hundreds of complaints of motorists who get stuck at the pricier station, drive down the street and see it far cheaper.”
His suggestion? Always, always shop around when filling up tank.
“We spend thousands of dollars a year filling the tank, a dime or quarter per gallon adds up to hundreds of dollars,” he said.
Start saving those pennies, folks.