Gas prices are expected to drop by four percent in 2024, along with US electricity generation becoming more environmentally friendly.
Gas Prices Expected to Drop
As every car dealer experiences a rise in EV demand, the need for fossil fuels has been steadily decreasing year-over-year over the last decade. Along with this decrease in demand comes an increase in green electricity production, with a reported 40 percent of all electrical power generated in the United States in 2024 coming from green sources such as wind, solar, or hydroelectric.
According to CNN’s recent report, the fuel price reporting agency GasBuddy claims the average cost of a gallon of gas throughout the United States in 2023 was $3.51. Now as we enter the New Year, GasBuddy expects the price-per-gallon of gas will drop to an average of $3.38 a gallon in 2024, roughly four percent lower than in 2023. Conversely, we all remember the sky-high gas prices in 2022, with Statista reporting an average price of $3.91 a gallon that year. Thankfully, it seems we can anticipate some more downward progress that will help keep our wallets happy.
Green Energy Production on the Rise
How we get our electricity is as important as what it’s used for. The days of coal-fired electrical plants are long behind us, but there is still much work to do if a completely green electricity production is to be realized. A total of 40 percent of the energy mix, or total electricity generated in the United States, was done so by green means according to a 2023 article by the World Economic Forum. When it comes to EVs, this greener electricity is important due to the overall decrease in the carbon footprint, which in turn decreases the footprint of electric vehicles. An EV has less of an impact on the environment over its lifespan thanks to the ever-increasing renewable energy mix.
What These Factors Mean for Cars
If the 2024 fuel price forecast comes true, fossil-fueled vehicle owners are in for some savings at the pump this year which, as we all know, can help a lot when it comes to working within a budget. As for EVs, while it’s known that in 2022 charging an EV was up to six times cheaper than fueling a gasoline-powered car, a substantial hike in electricity costs took place in 2023, putting a small damper on those savings. However, it is still cheaper to charge than fuel.
A new year always brings fresh beginnings and whether you drive a gas-powered car or an EV, energy pricing affects us all. Do you see yourself getting into a differently-fueled car this year?
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