Will gas prices be lower in 2023?

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 from price comparison app GasBuddy, a nearly 50-cent decrease from the 2022 average of $3.96.

Why did gas prices surge in 2022?

The short answer is that we don't really know. A big reason gas prices surged in 2022 was the eruption of the Ukraine conflict. That conflict is still unresolved. Meanwhile, the Energy Information Administration predicts that a regular gallon of gas is expected to average $3.57 in 2023, compared to $4.05 in 2022.

How much will gas cost this year?

James Williams, energy economist at WTRG Economics, predicts the average price of gas this year will be close to the current price, which is around $3.20 per gallon. But anticipating future gas prices is challenging, he cautions, as oil prices tend to be quite volatile.

Will refinery capacity improve in 2023?

On the supply side, GasBuddy expects refinery capacity to improve in 2023, but issues that require maintenance could always come up — and send prices higher. James Williams, energy economist at WTRG Economics, predicts the average price of gas this year will be close to the current price, which is around $3.20 per gallon.