Gas prices could peak at more than $4 a gallon in 2022, report says

National News

RALEIGH, N.C. (WNCN) – There’s a chance gas prices climb as high as $4 per gallon in 2022, according to an outlook from GasBuddy.

The platform estimates the yearly average in 2022 to climb by almost 40 cents to $3.41 a gallon. It said the shot at an even sharper increase in fuel prices could come as the country continues to recover from the COVID-19 pandemic. Rising demand coming before relief or additional oil supply could drive the average price to that $4 threshold, the report said.

GasBuddy estimated the national average could peak as high as $4.13 per gallon in June 2022.

“After a hot start to the summer, prices should begin to decline, falling back to potentially just under $3 per gallon by the holiday season,” the report said.

The yearly average in 2021 was $3.02 a gallon.

“While Americans are likely to see higher prices in 2022, it’s a sign that the economy continues to recover from Covid-19. The higher prices go, the stronger the economy is. 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,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “There remains higher uncertainty than in a non-Covid year, 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.”

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