NEVADA APPEAL

Gas prices projected to rise by 36 cents higher in 2017


January 8, 2017 / Nevada Appeal staff report


BOSTON — Motorists may realize sticker shock in 2017 when it comes to gas prices.


GasBuddy, an organization that projects and monitors gas prices, projects motorists will
spend 36 cents more a gallon at the pump and are expected to shell out $52 billion more
this year compared to 2016. GasBuddy’s 2017 Fuel Price Outlook projects this year’s
average price will be $2.49 per gallon. Locally that would put the average price at about
$2.65 a gallon.


It’s projected $355 billion will be spent on gasoline in the U.S. over the course of the year, In
2016, motorists spent $39 billion less on gas than in 2015.


The seasonal switch from ‘winter-blend’ to ‘summer-blend’ as mandated by EPA and the
Clean Air Act will bring a spike at the pump later this winter and spring, with the national
average gas price rising between 35-60 cents between mid-February and a peak, likely to
occur in May.


Prices of $3 a gallon will be seen in at least the nation’s largest cities: Los Angeles, New
York, Chicago, Washington, D.C. and Seattle, with a strong possibility of such prices also
appearing in a majority of the nation’s 20 largest metros.


“The list of factors being mixed into the yearly forecast has never been larger. This year will
see a new administration take over, perhaps the most oil-friendly in some time, and with so
many unknowns in regards to policy changes, we’ll be keeping a keen eye on such along
with taxation changes. But forecasting fuel prices, especially this year, remains a
challenging balance of science and art,” says Patrick DeHaan, senior petroleum analyst for
GasBuddy.


Additional components that have the potential to weigh on retail gasoline prices include
federal and/or state tax changes, Middle East volatility, currency fluctuations, refinery
maintenance and/or unscheduled outages, weather events, and shipping/transportation
snafus.


“In recent years the ‘price at the pump’ continues to garner more media attention serving as
an economic barometer on Main Street that stirs opinions from a broad swath of consumers
from coast to coast,” said Gregg Laskoski, senior petroleum analyst. “Forecasting the
direction of that ‘barometer,’ the potential trouble-spots and how the trends are likely to
translate into dollars and cents affords us the opportunity to share insights that help
everyone save money, even when prices are climbing.”


FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND
MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH AND FUTURES
MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY
RESPOND IN THE SAME WAY TO SIMILAR MARKETS STIMULUS. A MOVEMENT
IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE
RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED. SEASONAL
DEMAND AND CURRENT NEWS IN COMMODITIES ARE ALREADY REFLECTED
IN THE PRICE OF THE UNDERLYING FUTURES.