Where Will Gas Prices Go In 2020

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INDIANA  – You can expect to pay a little less than what you paid last year for gas in 2020, said GasBuddy’s Patrick DeHaan, in his gas forecast for the new year. He said that will likely stay true, but could also depend on the situation with Iran.

In Indiana, you can expect to see prices jump significantly every week to two weeks, he said, because of price cycling, where stations price gas lower and lower, then it jumps up suddenly.

Patrick DeHaan, senior oil analyst with Gasbuddy.com

“Every seven to ten days in the spring and summer and every ten to 14 days in the fall and winter, you can expect prices to jump from ten to forty cents,” said DeHaan, chief petroleum analyst for GasBuddy. Price cycling is unique to Indiana and the Midwest.

DeHaan predicts a yearly national average of $2.60, which is two cents lower than 2019. He said you may see gas prices go up as much as 75 cents per gallon from February to May.

DeHaan said the situation in Iran could affect what you pay, especially if it escalates and the supply of Middle Eastern oil is cut off. But, the U.S. has plenty of other resources for oil, so it may not play a huge part in what happens to gas prices.

“There are new sources of oil production coming online in 2020 and continue increases in the U.S. and Canada and Brazil and Norway and a new producer coming online in Guyana,” he said. “That could keep oil prices from escalating and thus gas prices a bit lower.”

DeHaan said he doesn’t expect renewable fuel sources to have any effect on oil prices, and that the ethanol market has been stifled. Renewable credits have been cut out, shutting down several ethanol plants across the Midwest.

“Hit the road, America! It will be another year where gasoline prices will be relatively affordable- but don’t close your eyes- the price variation between stations and states will approach record levels. Never has there been a bigger opportunity to spend less, or to spend more, if you aren’t checking prices before filling up,” said DeHaan.