GasBuddy Issues “Sticker Shock” Warning: Motorists Will Spend $52 Billion More At The Pump In 2017

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Top Tier Gear USA

gas station pump

The price of oil has surged, which has pushed the market higher, and generated a healthy wealth effect for those who have equity exposure. And now it’s time for the hangover. As GasBuddy warns in its 2017 Fuel Price Outlook, motorists are about get some sticker shock in 2017 and will shell out $52 billion more over the course of the year compared to 2016 as the national yearly average rises to $2.49 per gallon.

Aside from gasoline prices that are forecast to be higher than 2016, highlights include:

  • $355 billion will be spent on gasoline in the U.S. over the course of the year, $52 billion more than last year. That’s a considerable jump given that motorists saved $39 billion on gasoline in 2016 versus 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.
  • $3 a gallon gasoline 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 twenty 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,” said 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.”

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Remember when Janet Yellen, and all the tenured economists in her circles said that plunging gas prices are great for the consumer? Well, we are about to find out just how bad for the consumer rising prices will be.

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  • huntress

    Not buying this story. Trump is very energy independent, gas and oil friendly. If anything, the prices will decrease.

    • MM

      Yes, I agree,,, In obummers speech a few years ago, he stated under his energy plan.. energy prices would Go Up! everyone applauded… which I still don’t understand why anyone would be happy about that…

  • dav1bg

    I hope OPEC will reduce oil production so that US fracking can jump in and take up that market share so that money paid for oil stays here. Factor in the cost of all these wars and see if foreign oil is cheaper.

  • Asylumsix

    Prices will increase… FOR CANADA…

    • MM

      And mexigo..

  • Alleged Comment

    All that money is being spent on lavish palaces, gold toilets, jet planes, and Bentleys in the Middle East.

    When America goes down nobody will feed them and millions will die trying to eat their gold and silver.

  • Steve from Ohio

    Time to end the ethanol subsidy. We will all get better gas mileage when they take the corn out of our tanks. Trump has said he will do that……and the cost of driving will go down along with the price of food as more land will be available for food instead of corn for alcohol. Such an energy and money waster is E-85.

  • King Lear

    More FAKE News.

  • Jackie Puppet

    It’s already began – prices have gone up 40-50 cents in the last week or so.

  • Jimmy Yost

    My dad played the stock market for all of his adult life (he died in 2007, he was 86 years old when he died) and he made a couple of million and later lost most of it, partly because he believed some of the so-called ‘experts’ predictions. He used to jokingly say: “If I was President I’d make a law that people who predict things would face a fine if their predictions didn’t pan out the way they said they would, and the amount of the fine would be based on the loss that was incurred by people who took their advice.” He would be grinning when he said it. But actually such a law wouldn’t be such a bad idea. It would certainly empty the internet of an enormous amount of bullshit.