Outlook: Gas Prices Rising In 2017

Published: Thursday, January 5, 2017 - 5:25pm
Updated: Thursday, January 5, 2017 - 10:14pm

The price you pay for gas depends on, among other things, the price of oil. Bloomberg energy reporter Bailey Lipshultz said OPEC, the Organization of the Petroleum Exporting Countries, continues to reduce oil supply, which means prices go up everywhere.

“It’s jumped 18 percent since the cuts were announced because Saudi Arabia said it will follow through with implementing those cuts,” Lipshultz said.

The market reaction to supply cuts by OPEC affects the price of gasoline for everyone.

But the impact of any change to oil and gas prices is felt a bit harder in metro areas, like Phoenix, where commutes are longer.

Lipschultz analyzed GasBuddy’s gas price projection for 2017.

"Areas like Phoenix where you are traveling and driving more often — $3 a gallon on average. They have Phoenix averaging in peak prices per gallon between $2.70 and $3.05, so that will directly impact those who are driving and relying on their cars,” Lipschultz said.

Average prices this week for Arizona sit at $2.13.

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