2024: Annual Fuel Outlook, Predictions of Lower Gas, Diesel Prices

National average price of gas projected to see yearly decline in 2024 for second straight year

GasBuddy, a PDI company, released its annual Fuel Price Outlook with some good news for drivers: expect lower gasoline and diesel prices in 2024. The outlook highlights key trends in gasoline and diesel prices, forecasting that, after two years of above average gas prices, 2024 will bring relief at the pump for consumers as several factors contribute to less of a pinch at the pump. GasBuddy expects the yearly national average will drop from $3.51 per gallon this year to $3.38 in 2024.

Highlights from GasBuddy’s 2024 Fuel Outlook:

• Gas prices still could fall below a national average of $3 per gallon this winter before starting to rise in late-February, getting close to $4 per gallon as summer approaches, then mildly declining into summer, with hurricane season presenting uncertainty in late summer.

• Drivers in some California cities could again briefly see prices above $6 per gallon if major refinery issues develop during the summer, although most major U.S. cities will see prices peak at or slightly below $4 per gallon in 2024.

• Americans are expected to spend a combined $446.9 billion on gasoline in 2024. Average yearly spending per household will fall to an estimated $2,407, down 2% from 2023, and over 12% less compared to 2022.

• Electric vehicles (EVs) and the 2024 presidential election have the potential to impact fuel prices in the year ahead, with a potential slowdown in the EV transition at stake.

• Memorial Day will be the priciest 2024 holiday at the pump, with the national average price of gasoline expected to be $3.56-$4.04 per gallon on the holiday...