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Gas Prices Expected to Rise in 2022, Could Hit Over $4 per Gallon in Spring: GasBuddy GasBuddy's 2022 Gasoline Forecast (pdf), released Dec. 29, predicts that the national retail gasoline price will average $3.41 per gallon for all of 2022-assuming no significant interruptions to the ongoing economic recovery.

By The Epoch Times

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A fuel forecast from GasBuddy predicts gasoline prices will reverse their downward drift and rise next year, potentially jumping as high as $4.13 per gallon in June, though a likely bump in crude supply is expected to push prices lower by the end of 2022.

GasBuddy's 2022 Gasoline Forecast (pdf), released Dec. 29, predicts that the national retail gasoline price will average $3.41 per gallon for all of 2022—assuming no significant interruptions to the ongoing economic recovery.

"While Americans are likely to see higher prices in 2022, it's a sign that the economy continues to recover from COVID-19," GasBuddy head petroleum analyst Patrick De Haan wrote in the forecast.

Pump prices will peak in spring, ranging between $3.52-$4.06 per gallon in May and between $3.43-$4.13 per gallon in June, according to the forecast.

"No one would love to see $4 per gallon gasoline, but we'll only get there on the back of a very strong economy, so it's not necessarily bad news," De Haan said, adding that the forecast is subject to higher uncertainty due to the pandemic, "but all signs point to gas prices remaining elevated next year until the high prices attract additional oil supply, which will help prices cool off as we end 2022."

National average retail gasoline prices have been in a downward trend since peaking at $3.505 for the week ending Nov. 8, according to the Energy Information Administration (EIA).

The week ending Dec. 27 saw the national average fall to $3.375 per gallon, with the agency predicting in early December that prices would drop to $3.01 per gallon in January and average $2.88 per gallon in 2022.

EIA's price projections are lower than GasBuddy's prediction of a monthly average of $3.27 per gallon in January and $3.41 per gallon for the whole year.

Tom Kloza, global head of energy analysis at the Oil Price Information Service at IHS Markit said in a Dec. 27 Twitter post that he, like De Haan, believes the falling gas price trend has reversed.

"Cash prices for gasoline up 4cts (East of Rockies) to as much as 16cts gal (PNW). Downtrend in retail pump prices probably over for now," Kloza wrote.

The AAA said in a Dec. 27 note that crude price volatility has kept pump prices from falling more than they have, even as EIA data from the prior week showed a jump in domestic gasoline stocks along with a drop in demand.

"Typically, falling demand and increased supply would support larger drops in pump prices, but fluctuations in the price of crude oil have helped to keep pump prices elevated. If crude prices continue to climb, pump prices will likely follow suit," the AAA stated.

While gasoline prices have eased recently, they remain far above the year-ago national average of $2.250 per gallon. On Dec. 29, gas prices stood at $3.28 per gallon, around 11 cents lower than a month ago, according to the AAA.

High gas prices have played a major role in pushing up the rate of inflation, which hit a multi-decade high of 6.8 percent in the 12 months through November. They've also posed a political problem for the Biden administration, which has sought to cool pump prices by first pleading with OPEC to boost production and later releasing crude from the U.S. national strategic stockpile.

Republicans have criticized President Joe Biden for relying on OPEC to ramp up supply to counter higher prices at the pump, rather than boosting domestic oil production.

By Tom Ozimek

Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he's ever heard is from Roy Peter Clark: 'Hit your target' and 'leave the best for last.'

The Epoch Times, founded in 2000, is headquartered in Manhattan, New York, with a mission to provide independent and accurate information free of political bias or corporate influence. The organization was established in response to censorship within China and a lack of global awareness regarding the Chinese regime's repression of the spiritual practice Falun Gong.

The Epoch Times is a widely read newspaper that is distributed in 33 countries and is available in 21 languages. The publication has been critical in providing balanced and detailed reporting on major global events such as the 2003 SARS pandemic and the 2008 financial crisis. Notably, the organization has played a key role in exposing corruption inside China.

Aside from its human rights coverage, The Epoch Times has made significant contributions in a variety of fields. It has received praise for its in-depth analysis and expert perspectives on business, the economy and U.S. politics. The newspaper has also received praise for its broad coverage of these topics.

A series of editorials titled "Nine Commentaries on the Communist Party" appeared in The Epoch Times in 2004. It asserts that freedom and prosperity in China can only be achieved by eliminating the Communist Party, which violated China's cultural and spiritual values. In addition, the organization led the Tuidang movement, which resulted in over 400 million Chinese citizens quitting the Communist Party. In spite of this, 90% of websites referring to the "Nine Commentaries" were blocked by the Chinese regime.

The Epoch Times has been at the forefront of investigating high-level corruption cases within the Chinese regime, with its reporters taking significant risks to uncover these stories. The organization has received several awards for its investigative journalism.

The organization has received several awards for its investigative journalism. For more, visit www.theepochtimes.com.

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