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GasBuddy.com’s Patrick DeHaan on how gas prices will be impacted if the U.S. government goes over the fiscal cliff, plus his outlook for 2013.
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Point this year but compared to last year prices are still higher will they continue to fall in 2013 or have we hit rock bottom joining us now.
Patrick -- hot gas buddy.
Dot com Patrick good to see you thanks for -- it's a first of -- We gotta talk about the price of oil eventually of course that's that's we're gas comes from.
And it is up over 91 dollars a barrel right now how -- before that begins to trickle in the price of gas.
You know probably will be pretty quick we look back at the last seven years and six out of those last seven years we saw gas prices take a jump between Christmas Day.
In January 15 so it's likely that the parties already over the national averages popping up a bit.
Also prices are moving hired just as oil prices are so we expect some translation into the pump here.
Within the next few days the party's over we had our low prices will begin rising again as we approach 23.
Mean now I can't disagree review but but -- I'm gonna just put out a couple of arguments that might be disagreeable to that notion one.
One is demand destruction the fact that the higher the price of gas goes particularly if the economy if we go off this fiscal -- which means we could -- -- recession.
-- which means people gonna have to cut back on all kinds of things one of those things would be their trip to it to wherever driving their car maybe they'll take a bus instead -- -- won't that.
Bring down prices a little -- That's certainly well if we if we go over the fiscal -- -- that that could send the country into recession that's the that's the whole fear here is that we do go over the cliff and -- yes gas prices are likely to move lower that could move substantially lower.
But there has been some -- -- on the front of the fiscal -- there there's some sort of resolution that will likely be hammered out.
And so I don't really foresee -- going off the side -- but certainly gas prices may.
Be lower and 2013 even if there is some sort of resolution we made all the new yearly average somewhere between 2011 and 2012 average so.
It may be a bad year but it shouldn't be as bad as what we saw this year.
-- Patrick you know it seems like that let every two or three years -- -- several years.
You know the country that goes into panic attack has been by June or July we see five dollars.
A gallon overcast what are your forecasts were going into next summer bring -- into the spring.
We believe it or not -- -- in all the months -- the year all twelve months there's only one month that we believe prices may approach four dollars a gallon on the national average now of course California.
Will be the exception here and of course will be much higher than the national average.
But our forecast looked for a 2013.
That isn't quite as bad as 2012 was very similar will likely -- to price peaks.
We'll see prices pop in the springtime as they always do ahead of the switchover to summer gasoline.
And we likely will see another price peak later in the summer corresponding what the peak of hurricane season that of course.
It is something we're now aware of after Katrina.
-- many oil platforms out and that's certainly concerns -- also to price peaks but I don't believe the national average will breach four dollars a gallon and 2013.
Patrick to hot gas buddy dot -- Patrick thank you very much appreciate it thank you -- union.
