Drivers expected to pay more at the gas pump in 2018

IDAHO FALLS, Idaho — Drivers are expected to pay more at the gas pump in 2018, according to a new report.

In it’s 2018 Fuel Outlook Report, GasBuddy says gas prices are at their highest since 2014.

“The nation’s yearly gasoline bill will rise to $364.6 billion dollars, some $25 billion higher than what motorists spent last year as the average household sees their yearly gasoline bill rise to $1,898, up from $1,765 in 2017,” according to a press release by GasBuddy. “Compared to 2016, motorists will be shelling out $62 billion more during the year, enough to buy a fleet of 670 Boeing 737s.”

Photo Courtesy: GasBuddy

On average, Idaho hasn’t seen gas prices below $1.75 since January 2008.  But, despite the increase in fuel prices, the Gem State still maintains lower prices per gallon than it’s neighboring states to the west like California, Oregon and Washington.

Analysts with GasBuddy project Idaho, Utah and Wyoming fuel prices to hover in the $2.50 range, while states like Oregon may see prices as high as $2.75 per gallon and $3.20 per gallon in California.

Photo Courtesy: GasBuddy

 

In the report, GasBuddy explains there is no one cause for the increase in gas prices, but say Organization of the Petroleum Exporting Countries (OPEC) and several natural disasters like Hurricanes Harvey and Irma play a role in what drivers pay while fueling up.

“Many will be quick to ask why we’re expecting higher prices,” said Patrick DeHaan, head of petroleum analysis at GasBuddy. “Ultimately, OPEC bears much of the responsibility for cutting oil production, leading oil inventories to begin 2018 nearly 50 million barrels lower than a year ago. Yet, understanding many factors, including OPEC, fuel taxes, the economy and their impact on supply and demand is integral to providing a thorough and balanced outlook on gas prices for 2018.”

You can read the full report below.