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Cornelius News

Industry expert: Gas prices poised to climb

Feb. 5. Retail gasoline prices rose across the United States in 2021 with the average retail price for regular grade gasoline increasing to $3.01 per gallon nationwide.

The average US retail gasoline price began 2021 at $2.25 a gallon. The average price first passed $3 on May 17, after disruptions to Colonial Pipeline operations.

Will we see prices come down in 2022?

Gas whisperer

No, says gasoline industry expert Tom Kloza.

The global head of energy analysis at Oil Price Information Services, an internationally known fossil fuel tracking firm, says he expects gasoline prices to head very much in the wrong direction: Up.

“I would say that for NC markets, we’re projecting a spike mostly between the Ides of March and Memorial Day,” Kloza says.

He’s forecasting a spike of around 50 cents a gallon which would put average numbers around $3.65 gallon.

Regional differences

“Western states and some high tax Northeastern states will push the national average above $4 gallon in my view,” Kloza says.

Gasoline prices vary regionally, reflecting local supply and demand as well as differences in state fuel specs and taxes.

All that said he’s hopeful Iran comes back online sometime this year. However, he is forecasting a barrel of crude will reach $100, up from $88 or $89 a barrel now.

From Jan. 4, 2021, to Dec. 27, 2021, retail gasoline prices increased by $0.88/gal in the Midwest, $1.20/gal in the Rocky Mountains, and $1.32/gal on the West Coast, according to the US Energy Information Administration.