HPP: In the year 2025, it is anticipated that the trend of falling gas prices will continue, which will provide some respite to wallets that have been pinched by inflation.
According to GasBuddy, a reliable source for fuel price estimates, the national average price of a gallon of regular gas is expected to decrease to $3.22 by the year 2024, which is a decrease from the average price of $3.33 in 2024.
Who’s ready!? Next week Tuesday, we unveil the GasBuddy 2025 Fuel Outlook- the most accurate outlook on US #gasprices. We’ll have month-by-month predictions for the national average, the highest prices in select major cities, and the 2025 yearly average for ALL 50 states! pic.twitter.com/5ysGW5MyrE
— Patrick De Haan (@GasBuddyGuy) December 27, 2024
The average price of gasoline has reached its lowest level since 2021, marking the third year in a row that prices have decreased.
An hopeful prognosis was echoed by Patrick De Haan, who is the head of petroleum analysis at GasBuddy. He stated that “2025 appears to continue the trend of slow-but-steady improvement at the pump.”
He mentioned that even at the busiest times of the year for driving, it is anticipated that costs will remain lower than $3.50 per gallon.
It is expected that the annual fuel expenditure for the typical household in the United States would be $2,252, which is a significant decrease from the record high of $2,715 that will be reached in 2022.
Gas prices recede and could continue dropping in 2025, forecast finds. https://t.co/DMS7drLRyn
— CBS News (@CBSNews) January 1, 2025
On the other hand, this optimistic projection might be derailed by a number of unknown factors. According to De Haan, one of these is the anticipated 25% tariffs that President-elect Donald Trump would impose on imports from Canada and Mexico.
These tariffs have the potential to increase the price of gasoline by anywhere from 30 to 70 cents per gallon.
Despite the fact that Trump campaigned on the promise of lowering the price of gasoline to less than $2 a gallon, industry experts continue to be doubtful.
According to Rob Thummel, who works for Tortoise Capital, excessive production could result in an oil glut, which would bring about a decrease in prices and cause instability in the energy industry.
The existing enormous amount of crude oil that is produced in the United States is another factor that prevents prices from reaching record lows.
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In 2023, the United States of America, which was the biggest producer on a worldwide scale, pumped an average of 12.9 million barrels per day, which established a new world record.
In spite of the fact that output has been expanded, demand has remained stable, which has prevented prices from falling much more.
The news that gas prices have decreased is something that many people are happy about; nevertheless, De Haan warned that unanticipated occurrences, such as a crisis in the Middle East or extreme weather that disrupts oil supplies, might cause prices to rise.
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In the end, although 2025 offers the potential to bring about more inexpensive gas prices, the final price at the pump will be determined by the equilibrium of production, the stability of geopolitical conditions, and the economic policies.