Gasoline Price Forecast: Will Americans Catch a Break in 2014?

“U.S. gasoline prices will indeed see huge swings and regional volatility in 2014,” reported GasBuddy on December 27, “but GasBuddy analysis suggests that when all the final figures are calculated, the average price next year will fall by about 10cts gal from 2013 numbers.” GasBuddy, an organization devoted to the study of gasoline prices, estimates that gasoline prices in the United States could hit an average of $3.399 per gallon in 2014.

If the forecast turns out to be true, the falling prices could be a much-needed tailwind for American consumers. Prices vary by time and place, but H&R Block estimated that the average American spent about $2,100 on gasoline in 2012. That estimate was calculated using a $3.80 per gallon price tag at a use rate of 558 gallons per year. (Fun fact, the average national gas tax is 48 cents per gallon.)

Fortunately for Americans on a tight budget, 2013 has been a better year for gas prices. The current nationwide average price of gas is just about $2.27 per gallon, and the full-year average was about $3.50. Assuming average gas use remained constant at 558 gallons, the typical annual gasoline bill in fell about 7.9 percent to $1,953 in 2013.