Industry expert: Gas prices poised to climb

Feb. 1. By Dave Yochum. Retail gasoline prices rose across the United States in 2021 with the average price for regularĀ  increasing to $3.01 per gallon nationwide.

The average US retail gasoline price began 2021 at $2.25 a gallon. The average price first passed $3 on May 17, after disruptions to Colonial Pipeline operations.

When gas prices rise, it can affect the wider economy, impacting consumer spending.

Will we see prices come down in 2022?

Gas whisperer

No, said gasoline industry expert Tom Kloza.

The global head of energy analysis at Oil Price Information Services, an internationally known fossil fuel tracking firm, said he expects gasoline prices to head very much in the wrong direction: Up.

“I would say that for NC markets, we’re projecting a spike mostly between the Ides of March and Memorial Day,” Kloza said.

He’s forecasting a spike of around 50 cents a gallon which would put average numbers around $3.65 gallon.

Regional differences

“Western states and some high tax Northeastern states will push the national average above $4 gallon in my view,” Kloza said.

Gasoline prices vary regionally, reflecting local supply and demand as well as differences in state fuel specs and taxes.

All that said, Kloza is hopeful Iran comes back online sometime this year. Nevertheless, he forecasts a barrel of crude will reach $100, up from $88 or $89 a barrel now.

From Jan. 4, 2021, to Dec. 27, 2021, retail gasoline prices increased by $0.88/gal in the Midwest, $1.20/gal in the Rocky Mountains, and $1.32/gal on the West Coast, according to the US Energy Information Administration.


One Response to “Industry expert: Gas prices poised to climb”

  1. Thank you Joe Biden. Your energy policies caused this, without reducing worldwide consumption of fossil fuels. Russia appreciates all you have done for them.

    Posted by Rick Cornwell | February 1, 2022, 3:40 pm

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