2023 gas prices expected to decline after last year's historic highs
SAN FRANCISCO - 2022 proved to be a record year at the gas pump. While 2023 is just getting started, some experts believe there won't be as much pain at the pump.
"While prices may be high at some points of the year, I don't think you need to set as much money aside for your budget for gasoline in the year ahead. There certainly could be spurts where high prices hit your wallet particularly hard. But over the course of the year, I think motorists will probably spend 10-15% less on gasoline," said Patrick de Haan, the Head of Petroleum Analysis at GasBuddy. "It could be another bumpy ride this year, but I'm hopeful that it won't be a record-setting year."
Rideshare driver Jonathan Chaet sure hopes that's the case.
There was a point in 2022 when gas prices were so high that he questioned if driving full-time was worth it.
"I started thinking in my mind, how close to $7 will gas prices have to go before the value of the rides are not worth it," he said.
de Haan says while it may not be as rough as last year, he expects there to still be a good amount of volatility in the market.
"If we see a perfect storm like we did in 2022 when several refineries went down at the same time at the heart of driving season, that could be very problematic," he said.
If global and refinery issues coincide, he says that could have an impact on what consumers pay at the pump.
"In California, there is potential that if we get a perfect storm, gas prices could once again go beyond the $6/gallon mark," he said. "Though, I'm hopeful that perhaps we'll get through the spring and the summer without a myriad of refinery issues like we saw in 2022."
Chaet hopes that doesn't happen, as that's pretty much the tipping point that would get him back to questioning driving full-time.
"I would say gas going back over $6 a gallon. About $6 to $6.50ish," he said.
de Haan's projection for the year?
"California's average will probably be somewhere in the mid-to-upper $4 range or so, depending on what happens at refineries in the year ahead," he said.
