(WXYZ) — Gas prices are expected to surge from current lows in the new year, according to a report from GasBuddy.com.
The fuel research website warns the national average gas price could hit $3 per gallon this spring.
“While the bargain basement gas prices we’ve been seeing in areas across the country have been terrific and most welcomed, the party at the pump will likely wrap up in the next month or two, and prices will begin to rally as OPEC production cuts and a strong U.S. economy push gas prices back up. While the national average failed to hit $3 last year, we have an even stronger possibility of seeing that ugly possibility, which would push prices in some places from $1.99 today to over $3 this spring- which would be an impressive and shocking turnaround in just a few months,” said Patrick DeHaan, head of petroleum analysis at GasBuddy. “One caveat however, that may have motorists unexpectedly spending less- is what happens in the White House. Should all the darkest realities come to fruition, it could lead to slow down in the economy and take gas prices right along with it. As goes the economy, as go gas prices in the year ahead. Buckle up for the extra volatility we’re going to see- it could be nauseating.”
Here are a few highlights from GasBuddy's 2019 fuel report:
- The nation’s yearly gasoline bill will fall to $386 billion dollars, a drop of $2.5 billion over last year as the average household sees their annual gasoline spending fall slightly to $1,991, down $25 from 2018.
- The national average is forecast to rise as much as $1 per gallon from a low in January to a possible peak in May, but economic jitters could weigh heavily on where gas prices go in 2019.
- Over 90% of the country’s largest metro areas are at risk for seeing average prices hit $3 per gallon, including Atlanta, Boston, Chicago, Los Angeles, Miami, New York City, Philadelphia, Phoenix, San Francisco, Seattle, and Washington, D.C.
- How accurate was GasBuddy’s 2018 Forecast? Assembled in late 2017, the forecast called for a yearly national average of $2.57 per gallon with a peak of $2.89 per gallon in April. 2018 ended with a yearly national average of $2.73 per gallon with a peak of $2.98 per gallon on May 24.
See the full report here.