Report: Motorists could save plenty at the pump this year
Motorists are expected to save billions of dollars at the pump in 2016, according to new analysis from GasBuddy.com, a website that tracks local gas prices in real-time.
According to GasBuddy’s 2016 Fuel Price Outlook, consumers are expected to spend $325 billion on gasoline in the U.S. in 2016, a drop of $17 billion from last year.
For 2016, gas prices are starting off at record low levels. For January, GasBuddy reports the average price of gas nationwide is $1.97 per gallon.
Meanwhile, AAA reports a slightly higher national average of $2.01 per gallon. But the non-profit motorists organization also points out motorists are paying the lowest average for gas since 2009.
By the time the year wraps up, GasBuddy projects the national average will reach $2.28.
GasBuddy head petroleum analyst Patrick DeHaan said several factors contribute to the group’s projections.
“While past history is never a guaranteed indicator of future performance, it does offer clues that are instrumental to short-term and long-term forecasts,’’ said DeHaan in a statement.
Story continues after gallery
2016 cars with the best gas mileage
[bdc-gallery id=”1424174″]
DeHaan says a plentiful supply of oil and diminishing demand from other countries will translate into savings for U.S. motorists.
“We believe the global glut of oil and record level for U.S. crude oil inventory will maintain a considerable pressure on benchmark crude prices,’’ said DeHaan. “Coupled with tepid demand from the world’s largest economies, that suggest the overall trend of recent years should continue, and that means favorable outcomes for U.S. consumers.’’
While gas prices are starting 2016 at their lowest level in year, they are projected to climb during the course of the year as refineries switch from the EPA-mandated “winter blend’’ to “summer blend’’ gasoline.
GasBuddy expects the national average to reach a peak level of about $2.70 per gallon by May, considerably lower than the 2015 peak level of $2.82.
Most states will experience their highest gas prices in April or May, but a few could see high prices in June.
During this time, GasBuddy’s Fuel Price Outlook projects Boston motorists will see a peak average somewhere between $2.55 and $2.75. But DeHaan pointed out to Boston.com that local stations could charge above that price range.
These projects are not set in stone. World events such as instability in the Middle East, dramatic weather, local tax changes, and transportation issues could further affect gas prices. But GasBuddy still projects consumers will end 2016 having saved more money on gas than in previous years.
“While there are always some unforeseeable surprises, we’re confident that when we reach the end of 2016, the roller coaster ride will net savings over fuel purchases of last year, especially for savvy motorists who shop for the cheapest gasoline prices,’’ said GasBuddy senior petroleum analyst Gregg Laskoski in a statement.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com