Lifestyle

Potential Ramifications of 2017 Fuel Cost Speculations

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For more than a year, reasonably low gas prices have been the budget mainstay for a large amount of Texans, especially in comparison to the rates experienced from 2011-2014. However, speculators would have us experiencing a dramatic increase in gas prices anticipated for 2017, and going as far as predicting a rise to $3 per gallon.

What’s Happening Now

Potential Ramifications of 2017 Fuel Cost Speculations

Photo: Wikimedia

The national fuel price average is currently $2.21 per gallon, up 3.8 cents from the month of November and almost twenty cents more than it was one year ago. Economists have identified that due to a reduction in travel, gas prices normally drop during the winter months, however in 2016, the opposite held true.

What Occurred in the Past

Potential Ramifications of 2017 Fuel Cost Speculations

Photo: Pixabay

Lower fuel costs have helped family budgets, reassured consumers that different choices in vehicles wouldn’t break the bank, and assisted local economies with increased domestic travel in the form of driving. A rise in gas prices could do just the opposite, with consumers looking to downsize their larger vehicles in favor of more fuel-efficient, smaller models, reducing driving, and limiting costs that would adversely affect their budgets.

What Speculators Say

Potential Ramifications of 2017 Fuel Cost Speculations

Photo: Flickr/David Blackwell

With this prediction, speculators also caution that with a glut in fuel inventory, they do not anticipate a rise in prices above $3 per gallon in 2017, and caution that a number of factors, including fuel produced by OPEC countries, as well as North America, could have an influence on their predictions.