2020 to Bring Good News at Gas Pump for Some, Not All

BOSTON – GasBuddy, the smartphone app helping consumers avoid paying full price for fuel, today predicts that 2020 will feature a yearly national average of $2.60 per gallon, representing a 2 cent drop versus 2019.

At the same time, the fuel-cost tracking service warns that the national average will rise as much as 75 cents per gallon from a low in February until an eventual peak in May.

This will lead to localized gas price hotspots that could lead unsuspecting motorists to pay as much as 15- to 50 cents more per gallon than competitors, according to GasBuddy.

Some highlights from GasBuddy’s 2020 fuel price outlook include:

• The nation’s yearly gasoline bill will rise to $373 billion dollars, an increase of over $1 billion from last year as the average household sees their annual gasoline spending rise to $1,935.
• The national average is forecast to rise as much as 75 cents per gallon from a low in early February to a possible peak in May, as the seasonal switch to summer gasoline leads to notable jumps and causes some stations to raise prices much quicker than others, leading to buying opportunities for motorists who compare prices.
• 75% of the country’s largest metro areas are at risk for seeing average prices hit $3 per gallon at some point in 2020, including Atlanta, Boston, Chicago, Cleveland, Detroit, Miami, New York City, Philadelphia, Phoenix, and Washington, D.C. while four could see close to or over $4/gal: Los Angeles, Sacramento, San Francisco, and Seattle.

“Hit the road, America! It will be another year where gasoline prices will be relatively affordable — but don’t close your eyes — the price variation between stations and states will approach record levels,” advises Patrick De Haan, head of petroleum analysis for GasBuddy .

For those making resolutions, GasBuddy suggests shopping around at the pump and driving less aggressively: The savings could add up to $477 per year, or roughly $10 per tank. In addition, motorists can sign up for Pay with GasBuddy, a free program that links to your checking account and offers instant savings of up to 25 cents per gallon

Find the full report linked here.

Copyright 2024 The Business Journal, Youngstown, Ohio.