Americans could be paying as high as $4 per gallon at the pump this spring due to economic recovery and strong demand before relief arrives in the second half of 2022, according to an outlook from GasBuddy.
Patrick De Haan, GasBuddy head of petroleum analysis, said the national average could peak as high as $4.13 per gallon in June 2022.
"While Americans are likely to see higher prices in 2022, it's a sign that the economy continues to recover from COVID-19," De Haan said. "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.
"There remains higher uncertainty than in a non-COVID year, but all signs point to gas prices remaining elevated in 2022 until the high prices attract additional oil supply, which will help prices cool off as we end 2022," he explained.
GasBuddy's forecast says San Francisco and other California metro areas could see the sharpest price increases at the pump. Prices could reach as much as $5.65 per gallon.
The prospect for soaring prices comes as President Biden's cunning SPR-release plan to ease the pain in Americans' pocketbooks has backfired. The average cost for gas over the past 20 years is $2.77, which means at $3.288, the president's price for Americans is 18% above average...
The current US gas prices have never, ever been higher for this time of year... Seasonal trends suggest prices will increase through spring.
Kyle Bass was right when he said higher prices are coming despite Biden's SPR release. He predicts prices at the pump could exceed $5.
Get ready for explosively higher oil. 7 years of dramatic underinvestment in hydrocarbons fueled by ignorance like this will inevitably generate $100+ crude oil and $5+ prices at the pump for years to come.We all would love to see an overnight transition to alternative energy 1/3 https://t.co/fwJkRZzgQs— 🇺🇸Kyle Bass🇺🇸 (@Jkylebass) November 23, 2021
If GasBuddy is right and gasoline prices are set to rise through spring, this could be very problematic for the Biden administration ahead of midterms.
The dip after the "SPR Release" plan (driven more by Omicron fears than any increase in supply) has been entirely erased and retail gas prices are set to ride the rising trend of wholesale gasoline and crude prices.
What will Biden do now? Who will he blame?
Biden's polling numbers have already crapped the bed on rising inflation.
Republicans have taken the approach to blame the president and Democrats for high inflation eating away wages. With the SPR release a dud, what will the administration try next?