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Report indicates gas prices may flirt with $4 a gallon by Memorial Day
In late November, President Biden announced the release of 50 million barrels of oil from the Strategic Petroleum Reserve to help reduce the cost of gasoline.
According to AAA, the national average at the pump fell to $3.29 a gallon on Monday, which is a 13 cent reduction from the peak of $3.42 on November 8.
But that's still a pretty penny for most Americans, and according to a new GasBuddy (an app that tracks fuel prices, demand and outages) forecast, the price of fuel is going to get higher as we move into the New Year.
According to CNN, the new forecast predicts the national average will rise to $3.41 a gallon in 2022.
The GasBuddy analysis projects prices at the pump will peak nationally at a monthly average of $3.79 in May, before finally retreating below current levels by late 2022.
Patrick De Haan, head of petroleum analysis at GasBuddy said, "We could see a national average that flirts with, or in a worst-case scenario, potentially exceeds $4 a gallon."
Such an increase in prices at the pump would be yet another burden to American families that are already struggling amid the pandemic-induced inflation.
But not all experts are on board with GasBuddy's prediction.
Earlier this month, the US Energy Information Administration said the national average will likely drop to $3.01 a gallon in January and fall to $2.88 for 2022.
Citigroup also predicted a "radical drop" in energy prices, including a potential bear market for oil next year.
While the future of gas prices is currently a matter of debate among some, such shifts in various aspects of the economy are issues President Biden earlier vowed to address so as to, "bring down costs for the American people and continue our strong economic recovery."
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