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

Tyler Durden's picture

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.”

* * *

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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demi urge's picture

A paltry $2.49 is a hangover?

How much less did they spend than in 2016 versus previous years?

demi urge's picture

"saved $39 billion" Ah, there it is. Missed it the first time.

 

Would be nice to go back a few more years too.

SILVERGEDDON's picture

" Save gas, fart in a jar. "

Bumper sticker sighted on a Cadillac in 73 during the Saudi embargo.

Shoulda nuked the House of Saud back then, and turned the kingdom into a drone airport / oil tanker loading zone.  

Bumpo's picture

Except Trump will make the US energy independent. Please file story under "Peak Oil". LOL

BabaLooey's picture

"Hey..got any gas to help a fellow American, down on his luck.....buddy?"

"Yeah sure <trumpet fart> ............smell all ya want."

Joe Davola's picture

But stockpiles of oil and refined product are up, or so I read earlier.  Conundrum: whose story should I consider fake.

buttmint's picture

silvergeddon:

 

"shoulda nuked Rockefeller and Henry Kissinger in 1973 when the petrodollar was formed."

fixed it for ya!

 

I&#039;m Broke AF's picture

WTF you Americans bitching about?  I pay $1.15 Canadian for 1.00 Liter of fuel (equivalent to 0.26 gallons US).  That's the equivalent of an American paying almost $4.60/gallon (NOT including exchange fees for convertability of CAD to USD)

 

In other words....STFU!

gearbaby's picture

Ecuador pays $1.48/gallon of gas and $1.03/gallon for diesel, and has for years. So, Canada boy, YOU shut the fuck up.

http://yourescapetoecuador.com/life/cost-of-living/

any_mouse's picture

Gas may be cheap in Ecuador, but what about my guns and ammo?

RedBaron616's picture

Welcome to the Land of Socialism, Comrade. You have to pay for everyone else's free ride!

actionjacksonbrownie's picture

Did you remember to tack on the boy king's $0.40/gallon carbon tax to that price?

Zarbo's picture

Let me get this straight.  We have glut of oil and also distilled products, yet the price goes UP?   Hmmm. 

demi urge's picture

Forecasters tend to project high, especially these days.   If the glutty glut keeps gluttin' the way it's glutted lately we won't see that $2.49 avg this year.  But if the OPEC cut actually happens (not holding my breath) we could see the glut deglut a bit... which seems to be what these forecasters are counting on.

El Vaquero's picture

The oil markets are totally fucked up and irrational.  If people cannot afford more than $0.50 for an apple, apples won't cost more than $0.50.  But what if apples cost $1.00 to produce?  In a rational world, you don't get apples.  Low prices lead to shortages.  However, if you have a central bank that decides to financialize the shit out of the world, start giving free money out to financiers via ZIRP and QE, distortions happen.  Apple producers see that they can sell junk bonds at near zero interest and produce apples at $1.00 a piece and sell them at $0.50 a piece.  Since there is a loss on each apple sold, they're going to have to make up for it in volume!  This isn't sustainable, you say?  That's what Chapter 11 bankruptcy is for!

 

That's kind of the state of the oil industry these days. 

ejmoosa's picture

Still cheaper than in 2010.2011, 2012, 2013 and 2014.

I think I'll be ok.

ejmoosa's picture

Oh and since 2011, I have moved to a diesel, so I consume 1/2 as much anyway.

Rainman's picture

In other words, the middle class will continue to be strip mined.

#prezidentsdontmatter

FreeShitter's picture

Ole rex says you are welcome.

alexcojones's picture

$52 Billion? That seems like a lot.

Already $3 in most of Californicate.

@ $2 here in Flyover Arizona

south40_dreams's picture

I'm calling Bullshit! We don't have $52 billion extra dollars

dynomutt's picture

I've seen $4/gal for Premium here in NYC

There are idiots who pay it, too.

I think there must be 3 gas stations left on the whole island of Manhattan, I've seen two disappear in the last 3 years.

pitchforksanonymous's picture

"Motorists Will Spend $52 Billion More At The Pump In 2017"

 

Wanna bet?

803Mastiff's picture

Da Banksters need payments made on energy sector loans... Like Canada Oil Sands Blaze Bump

Made in Occupied America's picture

Russian fault.  They should be pumping more crude to keep oil prices down to the $20s.

Eng7's picture

Europe, Australia and NZ pay over double what Americans pay for fuel and they are all doing fine.

HRH Feant's picture
HRH Feant (not verified) Jan 5, 2017 3:58 PM

I already pay more than $3 a gallon for ethanol-free gas. I would rather have my car actually work and not be ruined by crappy cheap gas. Pure Gas app is great to find places that sell ethanol-free gas.

ChargingHandle's picture

 52 billion heh..  more importantly of this figure what percentage of it will go towards financing terrorism and killing Americans?  The United States needs energy Independence so these cockroaches can scatter about all by themselves

RedBaron616's picture

You can thank Congress for doing the oil companies' bidding by allowing American crude to be exported instead of staying in America. Big surprise, Congress in Big Businesses' back pocket. Shocker.

LordDampNut's picture
LordDampNut (not verified) Jan 5, 2017 4:03 PM

This will peut Trump in a good light. Americans love spending lots of money on gas and heating fuels.

brooklinite8's picture

Funny story. I was going to manhattan to drop off some heavy stuff. Was running low on gas and thought it would be fine and I can find a gas station near by. Looking for a spot in Wall street area for about 15-20 min I almost ran out of gas. I remember seeing gas station on Lafayette and Broadway area only to find out 3 gas stations in that area have been closed for apartment buildings. I don't drive much but yes driving is getting lesser and lesser. 

I took a train to 33rd street and finally found a station and got some gas. I had to pay 25 bucks for a 2$ can. I thought to myself. 

Hands off m yBox's picture

Now I know why they have been making all those bike lanes.

edifice's picture

As power and wealth shift from West to East:

China:  Bicycles -> Cars

USA:    Cars -> Bicycles

buttmint's picture

good call edifice +1,000

gearbaby's picture

As per usual, vote in a Republican president and gas prices skyrocket. Happened under Bush 1, Bush 2 and now Trump. You Republicans/Conservatives are really fucking stupid.

RedBaron616's picture

Don't look now, but Trump is not President. This gas hike is still on Obama's watch. Besides, if you have no reason for it happening, it is hard to blame it on the politics, isn't it? Then again, never underestimate the ability of a liberal to make it up as they go along.

RedBaron616's picture

GasBuddy is useless when gas prices are moving. Usually the price has changed by the time you get to the station.

As for predictions, everyone has one. GasBuddy is no better at it than anyone else.

HRH Feant's picture
HRH Feant (not verified) RedBaron616 Jan 5, 2017 7:21 PM

PureGas app if you want to locate ethanol-free gas in your area or while traveling cross-country.

blargg's picture

I use GB and maybe one in 20 times has the price been wrong. I take the bus often (haha) and update stations along the route, and they're usually correct. It tells how many hours since it was last updated, so if it's been a day or more you can take the claimed price with a grain of salt.

moorewasthebestbond's picture

My '76 Olds will not be pleased.

TrustbutVerify's picture

Americans can be so stupid. The time to buy a smaller car that gets great MPG is now! Low gas prices allow the mindless herds to buy the biggest (so often) most over priced cars and trucks. Then when prices go back up, or they look at their pathetic retirement savings, they start gripe.
Just sayin'.

blargg's picture

So, cash for clunkers 2.0 is coming? That was disgusting to read about and see videos of them destroying engines to get paid by the government.

mo mule's picture

I don't believe it. Oil is not going up, the shale folks are going to out produce themselves now for a time as the price holds up above 45 and they can hedge it now that their pumping again, plus china is going to cut back on storing it, oil is headed for 14 sometime this year imho... they are going to cheat and now Libya is coming back online. China cuts and then you have another one million a day. No there is to much oil all around and the over buillt storage is  now full. Where are they going to put it?  They'll all pump until it's running in the streets. It's who they are...lol 

any_mouse's picture

Did you ever hear of GasBuddy before?

Now you have.

Everyone will want to download the GasBuddy app to find the cheapest gas because $52 billion creates Big Fear!

Fear Sells!

What are beer commercials like now? "Create your own safe space with an 18 pack of El Rancho!"

PS it is a mystery how pump prices are calculated beyond whatever the traffic will bear.

30 miles up the highway the price jumps 25-30 cents per gallon. Same state. Same county. Both places are barely dots on the map. Guess it costs that much per gallon to drive the load 30 miles further north of Vegas.

Prices always jump just before driving holidays.

PPS ZH is now in the PR as news biz.

blargg's picture

I wish I'd discovered GB earlier than last year. Its gas price heat map is awesome. My father was traveling around the US and I was able to quickly find the cool spots along his route to fill up at. Locally I use it regularly to find cheaper gas that's still top tier formulation. And finally, I get to contribute price confirmations/corrections, and make use of the other people in town who do the same. I get a sense of community in us helping each other find cheap gas.

PR or not, it's well worth using. You don't even need the app to use the gas price heat map on a web browser, if you just want to scan the area.