MEMPHIS, Tenn. — Households across the country are on track to save hundreds of dollars on gas in 2023.
“All in all, averaging how much you’re spending on gasoline will be down in the year ahead,” said Patrick De Haan, GasBuddy Head of Petroleum Analysis.
According to AAA, at the start of the year the average price for a gallon of gas was around $2.88 in Tennessee, $2.84 in Arkansas and $2.80 in Mississippi. While these prices may not stay around for long, they could be the beginning of an optimistic trend. According to GasBuddy’s 2023 Fuel Outlook, the average price of a gallon of gas is estimated to be almost 50 cents lower this year than in 2022.
“The average in the daily price of gasoline in 2022 was $3.96, we’re expecting that number to drop to $3.49 a gallon in 2023,” says De Haan, “An average household will spend $2400 on gasoline in the year ahead, that’ll be down, about $300 a household.”
De Haan attributes a new refinery expansion in the US as one of the reasons gas prices will not increase as much this year, along with several other refinery projects happening across the world.
“In Africa, Asia and the Middle East, and that could help cap gas prices as well,” said De Haan.
Prices took a dip this holiday season as people returned home for the holidays, so right now is likely the cheapest gas will be in the Mid-South for a while. Experts say January and February are typically the lowest prices will be for the year.
“And then by late February, March we tend to see gas prices going up as demand goes up and we switch to summer gas, and that could ultimately bring the national average above the $4 mark,” says De Haan.
Gas prices will continue to fluctuate over the course of the year, so to capitalize off of the savings many families may see, it is recommended drivers price shop for their gas at different stations to save a little extra.
“Shopping around, trying to drive more efficiently, and signing up for free loyalty programs are all great ways to save on gasoline in the new year.”
You can also check out our Gas Price Tracker here to find the best deals in your neighborhood.