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GasBuddy projects national average could hit $3 per gallon in 2021

The reason for the increase would be the national recovery from the pandemic.
Credit: toncd32/Getty Images

INDIANAPOLIS — GasBuddy reports the national average could jump to $3 per gallon in 2021.

The reason for the increase would be the national recovery from the pandemic.

  • The nation’s yearly gasoline bill will rise to nearly $326 billion dollars, an increase of over $45 billion from last year as the average household sees their annual gasoline spending rise to $1,670.
  • The national average is forecast to rise as much as $1 per gallon from a low in January to a possible peak in July, as the nation continues to recover from the COVID-19 pandemic, boosting demand as Americans slowly return to pre-COVID behaviors.
  • While much of the U.S. population will see prices remain in the $2 per gallon range, major cities in California and Hawaii will spend the entire year over $3, while others, including Chicago, New York City, Philadelphia, Phoenix and Seattle are also at risk of seeing average prices over $3 per gallon in 2021.

“While Americans are nearly guaranteed to see higher gas prices in 2021, it’s not all bad news. Average prices are still likely to be quite affordable, but some distinct and unpredictable changes in the COVID-19 pandemic may leave their wallets a bit more empty this year,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “However, I’m very optimistic that we’ll see improvement in the pandemic and see gas prices stay far under their previous records, leading Americans to perhaps turn to the nation’s highways to seek happiness after a year of stress and challenges, slamming the door on what was an awful 2020.”

A change in driving habits to be less aggressive and shopping around before filling up could save a driver $477 over the course of the year, according to GasBuddy.

To read the full GasBuddy outlook on 2021, click here.

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