Why Gas Prices Will Fall in 2023, According to Experts
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After a year of sky-high gas prices, experts are predicting that fuel costs could be lower in 2023.
The average gallon of gas in the U.S. is projected to cost $3.49 this year, according to a report from price comparison app GasBuddy, a nearly 50-cent decrease from the 2022 average of $3.96. If that prediction pans out, it'd certainly represent an improvement for drivers — but 2023 would still be the second-most expensive year for gas prices in a decade.
The major factors that affect U.S. gas prices include global economic conditions, demand for oil and gas, refinery and pipeline operations, federal regulations on fuel blends, taxes, weather and geopolitics, according to GasBuddy. This can lead to major fluctuations: For instance, gas prices are more than $1.80 cheaper today than they were in June, when the average gallon reached a record high just above $5.
Americans are commuting less because many people are still working from home as a result of the pandemic, but the appetite for recreational travel is high. That contrast complicates predicting gasoline demand for 2023.
