With fuel costs continuing to soar, gas price predictions are top of mind for many Americans.
Today’s Consumer Price Index (CPI) report for May revealed energy costs soaring more than 30% year-over-year, largely attributable to rising gas prices. Indeed, as the price at the pump increases, energy costs across the board face upward pressure. While overall prices increased 8.6% from last year, fuel and energy costs were a major driver of the grander inflation.
In addition, today the University of Michigan’s Surveys of Consumers released its preliminary June Index of Consumer Sentiment results. Interviewed consumers overwhelmingly expressed bearish expectations about future and current economic conditions. Inflation and gas prices in particular were focal points behind the declining consumer sentiment.
Survey of Consumers Director Joanne Hsu commented on June findings thus far:
“Overall, gas prices weighed heavily on consumers, which was no surprise given the 65 cent increase in national gas prices from last month (AAA). Half of all consumers spontaneously mentioned gas during their interviews, compared with 30% in May and only 13% a year ago. Consumers expect gas prices to continue to rise a median of 25 cents over the next year, more than double the May reading and the second highest since 2015.”
With the national average gas price sitting at $4.986 per gallon for regular gas, let’s see the experts’ fuel forecasts going forward.
Gas Price Predictions
According to analysts at JPMorgan, gas prices are on track to hit $6.20 per gallon by August. Citing California’s average price of $6.05, analysts believe it’s only a matter of time before the rest of the country catches up.
Meanwhile, Goldman Sachs analysts forecast Brent crude oil will average $140 per barrel between July and September, forcing gas prices to spike up to about $5 this summer.
Finally, according to the Energy Information Administration’s (EIA) June Short-Term Energy Outlook, the EIA sees gas prices remaining elevated throughout the rest of 2022. With that said, it doesn’t foresee costs rising too much through the rest of this quarter, believing the average retail gas price will trend around $4.27 per gallon in the third quarter of 2022.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.