Gasoline Prices in USA for January 2024

Gas prices will fall in 2024 for the second year in a row, according to GasBuddy .

GasBuddy, which had a forecast for 2023 that proved to be eerily accurate, expects US gas prices will average $3.38 a gallon in the key election year of 2024.

That would represent a significant improvement from 2023’s average of $3.51 a gallon and an even bigger drop from 2022’s average of $3.95. Gas prices skyrocketed to record highs that year as Russia’s invasion of Ukraine set off global shockwaves.

“Next year should represent a continued march towards what most Americans would consider normal prices at the pump,” Patrick De Haan, GasBuddy’s head of petroleum analysis, told CNN in a phone interview.

The forecast bodes well for consumers, who remain highly sensitive to swings in the cost of living, especially at the gas pump. It also offers a reason for cautious optimism for a White House fighting an uphill battle trying to sell its economic message to a skeptical public.

Cheaper gas prices would give the Federal Reserve an even wider runway as it seeks to pull off a rare soft landing of the US economy by taming inflation without starting a recession. The price of gas is closely watched by the Fed but is not included in its “core” inflation gauge.

“Gas prices may still be a bit elevated but considering wage growth, it is taking less of Americans’ hard work to pay for that gallon of gasoline,” De Haan said.

GasBuddy doesn’t see gas prices averaging $4 a gallon in any single month next year. The monthly national average is expected to top out at $3.67 in May and drop down to $2.99 by December 2024.

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