GasBuddy report predicts 50-cent gas price drop in 2023

The average price of gas in the U.S. is expected to drop by $0.50 in 2023.
The average price of gas in the U.S. is expected to drop by $0.50 in 2023.(Juliana Alford)
Published: Dec. 28, 2022 at 1:56 PM PST
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PHOENIX (3TV/CBS 5) — The national gas average is expected to drop in 2023 after a year of high prices, according to one analysis.

GasBuddy’s 2023 Fuel Outlook, released on Wednesday, forecasts that gas prices will drop by nearly 50 cents per gallon for an average of $3.49 for gasoline and $4.12 for diesel. Experts anticipate that prices may return to the $4 range by the summer, but normal seasonal fluctuations should happen throughout the rest of the year. Most major U.S. cities will likely hold around $4 a gallon. The average U.S. household is expected to spend around $277 less on gas in 2023.

“2023 is not going to be a cakewalk for motorists. It could be expensive,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Extreme amounts of volatility remain possible, but should become slightly more muted in the year ahead. I don’t think we’ve ever seen such an amount of volatility as we saw this year, and that will be a trend that likely continues to lead to wider uncertainty over fuel prices going into 2023.”

The report says the East Coast will be more susceptible to fluctuations based on Russia’s war on Ukraine. Overall, the highest gasoline prices are forecast to be seen in June, with an estimated peak of up to $4.19 per gallon on average. Diesel prices are forecast to average $4.12 in 2023, beginning the year at their highest level and then rebounding as high as $4.30 per gallon in June. Want to read the full report? Click here.