Gas Prices Could Be Set To Rise Again Amid Supply Issues

2022 has seen a lot of changes come our way. From more people working from home than ever to the rising cost of living and everything in between, it can be easy to feel as though there will never be an end to it all. Now, it seems there’s another to add to the list: gas prices.

That’s right; gas prices could be set to rise again amid supply issues, but will they outdo the record highs already set earlier in 2022? For now, there’s no way to know what the future holds. However, that hasn’t stopped people from predicting what could be in store if things continue down the same path.

Why are gas prices rising and falling so dramatically?

People with any need for gas have probably noticed that no two trips to the gas station are the same right now. Sometimes, the price is higher than ever before, while others, it seems to have fallen seemingly overnight. So what’s the deal? You’re not imagining things; gas prices really are rising and falling all the time. In June 2022, gas prices hit more than $5 a gallon - a record high for the US. However, according to the AAA, they have since fallen to an average of $4.059 a gallon a gallon in August. That’s thanks to an ease in bottlenecks at refineries and oil prices dipping. Sadly, supplies are still running low as demand for gas continues to rise across the world.

Goldman Sachs predicts gas prices will rise by the end of 2022

Investment bank Goldman Sachs has made predictions about the gas prices across the US for the first time - and it’s not good news. Now, it predicts that gas could cost an average of $4.65 by the fourth quarter (Q4) of 2022, a rise of around 7% from current prices. The analysis continues to explain how they predict 2023 will see gas rise to $4.40 a gallon, peaking at about $4.53 in Q2. Even though fuel consumption in the US has slowed in the last few months, the current lower prices could see demand increase once more. To top it off, fall brings the maintenance season at oil refineries, meaning congestion is likely and supplies will be limited. 

Part of gas prices going up us due to oil prices

One of the biggest things that affect how much gas costs is the cost of oil. Q3 2022 will likely see crude oil rise to $105 a barrel, according to Goldman Sachs, but that’s still down from $137 earlier in the year. The analysis predicts things could rise once again in 2023, with crude oil potentially hitting $125 a barrel. This, on top of the growing demand for oil and gas, could yet again see gas prices rise back up to the former highs we’ve seen in 2022. While there’s no way of guaranteeing what is to come, it could be a worrying time for those relying on gas in their lives.

It turns out gas prices could be set to rise again amid supply issues, but that doesn’t necessarily mean they will. If the last few years have taught many anything, it’s that a lot can change overnight. So while it seems gas prices are set to rise again right now, there’s every chance they might not, too.