The U.S. Energy and Information Administration (EIA) has projected that Americans may see the retail prices of gasoline fall to $3.01 per gallon in January 2022.
The EIA expects pump prices to drop further in 2022 and the national average to be $2.88 per gallon in 2022.
Earlier this week, the national average was $3.34 per gallon, representing a decrease of 5.3 cents from last week.
Read More: Expert Warns to Expect Inflation, Bubble Burst, and The Next Recession
Analysts blame fears over the Omicron variant of Covid-19 and the decline in fuel consumption for the rise in fuel prices. The EIA has also said that its forecast was subject to the pandemic and the emergence of new variants causing uncertainty in demand and energy consumption across the world.
The EIA Acting Administrator Steve Nalley said in a statement that it was a complicated environment for the energy sector.
“This is a very complicated environment for the entire energy sector. Our forecasts for petroleum and other energy prices, consumption, and production could change significantly as we learn more about how responses to the Omicron variant could affect oil demand and the broader economy,” Nalley said.
