Low Gasoline Prices to Save Motorists $17 Billion in 2016

The national average price for a regular gallon of gasoline in 2015 was $2.40, according to analysts at GasBuddy. That average is projected to fall 12 cents to $2.28 in 2016, a decline of about 5%. That’s $1.06 a gallon less than the 2014 average, $1.20 less than the 2013 average and $1.32 less than the 2012 average.

In 2015, U.S. drivers saved $134 billion year over year at the gas pump as a result of the collapse in crude oil prices that began in the fall of 2014 and lasted all through the year. In 2016, motorists will tack on another projected $17 billion in savings, for a two-year combined total savings of $151 billion.

GasBuddy has projected that the year’s lowest national average gasoline prices will come this month and range between $1.91 to $2.06, leading to a national average of $1.97 for the month. Maintenance and upgrades begin for some refiners in February and the maintenance period sends prices higher for a few months. GasBuddy projects that 2016’s peak national average price will occur in May when the range rises to $2.43 to $2.74 and the national average for the month is expected to be $2.63 a gallon.
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From May through December, the national average price is expected to decline steadily (excepting a small rise in August) to close out 2016 at a national average price of $2.01 in December, not far from the $1.99 per gallon price that closed out 2015.

GasBuddy also projected peak daily average prices in 2016 for a number of U.S. cities. California leads the pack here with a peak average of $3.75 to $4.25 in Los Angeles and $3.65 to $3.95 in San Francisco. Houston’s peak daily average is lowest, $2.30 to $2.50 per gallon, with Atlanta, Denver, Dallas, and Jacksonville peaking at range that tops out at $2.65.