Lower Gas Prices Are Forecast For 2024: Here's Why

ACROSS AMERICA — Gas is not expected to cost as much next year, according to a 2024 fuel price outlook that looks at current market conditions and speculates on how they may affect fuel prices in the future.

A gallon of regular gas cost an average of $3.51 in 2023, but the 2024 average could be around $3.38 a gallon, according to GasBuddy, an app that helps users find cheap fuel in their area. If the forecast proves correct, consumers could save $32.3 billion on fuel for their vehicles in 2024.

U.S. fuel prices reached record highs in 2022 due to COVID-19 supply issues, near-record inflation, and Russia’s war in Ukraine. The forecast author, Patrick De Haan, GasBuddy’s head of petroleum analysis, said he expects prices will normalize next year, with prices averaging $3.38 a gallon, compared to $3.51 in 2023.

“As 2023 fades away, I’m hopeful those $5 and $6 prices for gasoline and diesel will also fade into memory,” De Haan said in a statement. “The global refining picture continues to improve, providing more capacity and peace of mind that record-setting prices will stay away from the pump this year. 2024 will feature some volatility, unexpected outages and disruptions, and potentially weather-related issues, but I do not expect it to feature record prices — anywhere.”

If the forecast is correct, 2024 prices will be around the level of 2014 price of $3.34 a gallon. The forecast makes allowances for seasonal peaks around Memorial Day when prices could go over $4 a gallon. The lowest gas prices in the past decade were in 2020, when the COVID-19 pandemic cleared U.S. roadways.

During other major holidays, gas prices are expected to remain well below that level, with per gallon prices ranging from $2.83-$3.16 possible by next Christmas.

Motorists nationwide are expected to spend about $446.9 billion to fuel their vehicles in 2024, compared to $479.2 billion in 2023. Both are well below $526.3 billion spent in 2022.

By household, gasoline spending is expected to be about $2,407 in 2024, compared with $2,460 in 2023 and $2,715 in 2022.

Here’s what Gas Buddy forecasts for gas prices by month in 2024:

• January: Range $2.84 - $3.37; average $3.11
• February: Range $2.96 - $3.43; average $3.20
• March: Range $3.19 - $3.58; average $3.39
• April: Range $3.19 - $3.58; average $3.52
• May: Range $3.44 - $3.89; average $3.67
• June: Range $3.41 - $3.82; average $3.62
• July: Range $3.32 - $3.74; average $3.53
• August: Range $3.28 - $3.92; average $3.60
• September: Range $3.24 - $3.67; average $3.46
• October: Range $3.16 - $3.52; average $3.34
• November: Range $2.99 - $3.31; average $3.15
• December: Range $2.81 - $3.16; average $2.99