Gasoline prices to increase in 2017 | News OK breitling price increase 2017

Gasoline prices to increase in 2017 by Adam Wilmoth Published: January 5, 2017 12:00 AM CDT Updated: January 5, 2017 4:09 PM CDT 0 shares facebook twitter pinterest email comments ×

Rising commodity prices are boosting the oil and natural gas industry and providing some stability for th breitling-price-increase-2017-rid-0.html. breitling watches for sale cheape state economy, but they also likely mean the end of the reprieve in gasoline prices.

Motorists nationwide likely will pay $52 billion more on gasoline in 2017 than they did last year, according to GasBuddy's 2017 Fuel Price Outlook released this week.

The national yearly average likely will be about $2.49 a gallon, the report stated, up from $2.13 in 2016. Thursday's average price nationwide was almost $2.37 a gallon, up from about $2 one year ago, according to In Oklahoma City, the average price was $2.13, up from $1.74 one year ago.

Prices likely will increase 35 to 60 cents in late winter and spring as refiners switch to more expensive and cleaner-burning summer blend fuels, the report stated.

“While the return to cheap gas last year may have felt as long coming as the Cubs bringing home the pennant, low gas prices usually don't last as long as we'd like," Patrick DeHaan, GasBuddy senior petroleum analyst, said in the report. "Unfortunately, as OPEC as tightened their grip on oil prices, Americans will be spending over $50 billion more this year on gasoline versus last, and unlike the Cubs winning the World Series, it may be years before some of the low prices we saw in 2016 come back.”

That may be unfortunate for consumers, but it's good news for the broader Oklahoma economy.

The national average price of gasoline has dropped each year since 2012, when it was $3.60 a gallon. GasBuddy's forecast for $2.49 would be the highest since 2014 when the price averaged $3.34 for the year.

Oil prices have doubled from 12-year lows set in February, but are still less than half the levels reached in early 2014. Most forecasts show prices gradually increasing over the next year, but not approaching $100 per barrel anytime soon.

Much of the reason for the increase in gasoline prices is because of rising oil prices, but retail prices also are affected by refinery output, transportation challenges and many other variables.

“The list of factors being mixed into the yearly forecast has never been larger," DeHaan said. "This year will see a new administration take over, perhaps the most oil-friendly in some time, and with so many unknowns in regards to policy changes, we'll be keeping a keen eye on such along with taxation changes. But forecasting fuel prices, especially this year, remains a challenging balance of science and art."

While gasoline prices look to be headed upward this year, compressed natural gas prices already are more expensive. CNG prices were artificially low last year because of the alternative fuel excise tax credit Congress passed in December 2015.

The legislation provided a 50-cent rebate to retailers for every gasoline equivalent gallon sold in 2016 and 2015. Many Oklahoma retailers passed the 2016 cost savings on to consumers, and 7-Eleven Stores Inc. cut the CNG price at its Moore location by $1 for more than 11 months until it sold as many gallons as it did in 2015.

Without the tax credit, CNG rates are closer to current gasoline prices, but are unlikely to increase much throughout the year.

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