Gas may be at lows not seen in a few years now, but consumers believe fuel prices will rise in time.
According to Automotive News , a survey by the Consumer Federation of America found that consumers expect prices will average $3.20/gal. in two years’ time, and hit $3.90/gal. by 2020:
Not only do these consumer expectations match the last major dip and rise in gas prices (2009-14), but they show that consumers understand when gas goes down, it inevitably goes back up.
The CFA also researched the previous fuel pricing decline and rise, and the fallout from it. In January 2009, the average was $1.84, while in 2014, it jumped to $3.36/gal. Between the two points, most consumers bought lower-mileage vehicles, leading to more pain at the pump as time worn on; those whose vehicles averaged 15 mpg spent $6,400 more on fuel than those whose vehicles garnered 25 mpg.
The group then focused on how consumers would be affected at the pump between now and 2020 if they bought a vehicle that averaged either 18 mpg or 28 mpg, finding that those who opted for the lower average would pay $5,000 more for fuel over the period than those who desired more fuel economy. However, the 1,007 surveyed want their next vehicle to average 30 mpg, compared to their current vehicles’ average of 25 mpg.
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