Higher gas prices are in pipeline for 2018

Gasoline prices are expected to creep higher for the second year in a row, costing U.S. motorists billions of dollars more in higher fuel costs.

Even though prices will rise, motorists will still be paying less than they did earlier this decade.

The price of a gallon of self-serve regular gas will average $2.57 nationally in

2018, according to a GasBuddy .com forecast provided to USA TODAY. That would mark an 18-cent jump from

2017’s average of $2.39 and a 45-cent jump from 2016’s decade-low $2.12. But it’s still far below 2012’s record of $3.60. For a 15-gallon fill-up, motorists will pay an extra $2.70 in 2018 compared to 2017.

The typical American household will spend about $1,898 on gas in 2018, up from $1,765 in 2017, according to the forecast by GasBuddy, an app with

70 million downloads that provides information on fuel prices and availability at nearby stations.

Overall that translates into $364.6 billion spent on gasoline this year, marking an increase of $25.4 billion.

Prices generally will be highest on the West Coast and East Coast. Prices could top out at $3.95 a gallon for self-serve unleaded in San Francisco, $3.65 in Los Angeles, $3.40 in Washington, D.C., and

$3.35 in Chicago.

“I don’t think much of the country will see a return to $3, but there’s a possibility that some places” will top it, GasBuddy senior petroleum analyst Patrick DeHaan said.

Some cities are likely to see cheap gas continue. Houston will top out at

$2.65, Boston and Dallas-Fort Worth both at $2.70 and Phoenix at $2.75, according to GasBuddy.

As usual, prices are expected to hit their highest point in the spring as the travel season kicks into high gear.

Americans can blame the Organization of the Petroleum Exporting Countries for much of the increase. OPEC’s November deal to extend production cuts first agreed to in late 2016 has fueled price momentum. “The production cut has worked in their favor,” DeHaan said. “OPEC tightening production has reined in low oil prices.”

On Tuesday morning, oil prices edged toward levels not seen since

mid-2015 after Iran protests conjured speculation about geopolitical instability. The price briefly topped $61 before heading back into the $60 range.

For a commodity often affected more by fears of the future than assessments of the present, the Iran protests were enough to spawn conjecture about unforeseen volatility.

But don’t expect it to affect gas prices drastically, DeHaan said. Even if Iran oil production is limited, the country’s political rival, Saudi Arabia, and U.S. oil producers can likely make up the difference.