GasBuddy predicts that in 2023, gasoline prices in Tampa will peak at $4.45 per gallon | Florida News

GasBuddy predicts that in 2023, gasoline prices in Tampa will peak at $4.45 per gallon | Florida News
GasBuddy predicts that in 2023, gasoline prices in Tampa will peak at $4.45 per gallon | Florida News

PHOTO BY ADOBE

Boston-based GasBuddy, in a yearly outlook released last Wednesday, predicted pump prices would average $4.25 to $4.65 a gallon in Miami, $4.15 to $4.55 in Orlando and $4.10 to $4.45 in Tampa.

As average gasoline prices have returned above $3 a gallon in Florida, a tech firm that monitors the fuel industry predicts prices above $4 a gallon in 2023.

Boston-based GasBuddy, in a yearly outlook released last Wednesday, predicted pump prices would average $4.25 to $4.65 a gallon in Miami, $4.15 to $4.55 in Orlando and $4.10 to $4.45 in Tampa.

The peaks, barring unexpected changes, would likely occur in the summer, followed by “normal seasonal fluctuations” with prices falling after Labor Day. GasBuddy predicts the national average will drop back down to around $3.17 before the start of 2024.

The average price for a gallon of regular unleaded last Thursday in Florida was $3.12, while the national average was $3.16, according to the AAA auto club.

Average prices hit $5 nationally and $4.89 in Florida in June before declining steadily for much of the rest of the year. Prices began to rise this week after falling below a Florida average of $3.

Patrick De Haan, head of oil analysis at GasBuddy, said in the report that it’s “highly unlikely” for a 2022 repeat, but “thunderstorm clouds” remain.

“2023 will not be a cakewalk for motorists. It could be expensive,” De Haan said. “The national average could top $4 a gallon as early as May — and that’s something that could last for much of the summer driving season.”

National gasoline prices could fall below $3 a gallon in February, climb to $3.99 in June, stay above $3.80 through the summer, and decline at the end of the year.

GasBuddy’s forecast does not assume “a severe recession”, but that “some level of economic reset will limit demand for oil”. He cited the uncertainty of China easing COVID-19 mandates, OPEC trying to balance oil markets by cutting oil production and Russia’s continued war in Ukraine.

“The East Coast remains highly sensitive to Russia’s war on Ukraine, as European countries seek supplies of oil and refined products elsewhere, putting upward pressure on prices on the East Coast,” says The report.

Other “unforeseen obstacles” could include pipeline closures and weather issues, such as hurricanes in the Gulf of Mexico.

For the year, the national average is expected to be $3.49 per gallon, compared to an average of $3.96 in 2022.

At this rate, the average US household is expected to spend $2,471 on gasoline in 2023, up from $2,748 in 2022.

GasBuddy, which acknowledges that its forecasts are not evangelical, predicted the national average to be $3.99 this year, its lowest margin of error since the first annual forecast in 2012.

The company said its “forecast has been higher than the actual result eight out of 10 years, with only two years, 2018 and 2021, in which the forecast was lower than the actual result.”

GasBuddy noted that prices are subject to seasonal increases and decreases related to refinery maintenance in the spring and fall and the Clean Air Act, which slowly removes certain pollutants from fuels.

Spring servicing comes as refineries run out of stock of winter-blend gasoline for more expensive summer-blend. Over the past decade, average price increases of 35 cents to 85 cents have been attributed to the change.

The average Florida unleaded price was just below $3 a gallon for most of the Christmas weekend. The West Palm Beach area had the highest average price on Thursday at $3.29 a gallon, while the Panama City area had the lowest average at $2.92.

. GasBuddy predicts quen prices gasoline Tampa will peak gallon News Florida Tampa

. GasBuddy predicts gasoline prices Tampa peak gallon Florida News

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