As oil prices hit a six-year low, financial experts predict gasoline prices should tumble to an average $2 per gallon by year’s end.
“For the most part, gas prices are out of whack in two areas of the country—the Midwest and West Coast—and high prices there have driven the national average upward, to $2.66 today from $2.58 a week ago,” Time reported
, citing a series of refinery shutdowns that forced drivers to pay more at the pump.
“Thankfully, the reasons for disproportionally high prices in these regions are expected to be addressed in the near future, and experts say we should be back on track for $2 gas by this autumn or early winter.”
Time reported that refinery problems in California and Indiana have been blamed for the gas price hikes. Industry experts say that these price hikes are temporary, however, and that the refinery issues in both California and Indiana will be less of a problem starting in September. Consequently, gas prices are expected to plummet this fall, Time reported.
Tom Kloza of the Oil Price Information Service told USA Today that as the industry manages to better cope with the Indiana refinery shutdown, he expects the national average to drop 10 cents to 15 cents in early fall, followed by further decreases of perhaps 50 cents per gallon by year’s end. With the national average at $2.66, much of the nation could enjoy $2 gas by Christmas.
Speaking specifically about California, Gordon Schremp, senior fuels specialist at the California Energy Commission, told Reuters last week, “We are going to have very expensive gasoline at least through Thanksgiving,” he said.
“There continues to be a surplus amount of oil in the global market, which is expected to keep prices of both oil and gasoline on the low end through the rest of this year,” said AAA spokesman Mark Jenkins.
“Gas prices did not fall as fast last week as they have in recent weeks, but that is to be expected because we are still in the middle of the peak driving season. Gas prices should fall even faster in the fall when school is back in session.”
© 2023 Newsmax Finance. All rights reserved.