Gas prices will fluctuate wildly in 2014, but when the dust settles, the average price at the pump will be significantly lower than in 2013, according to one analyst.
"Generally I think it's going to be a kinder, gentler year," said Tom Kloza, chief oil analyst at GasBuddy.com."I think we'll see a lot more deep valleys, we'll see some highs, and we'll probably get to $3.75 or so like we have in the last few years, but on balance, I think there will be lower prices than last year and lower than the year before," Kloza said.
Demand, inventories, production levels and taxes all impact the cost of gasoline, Kloza said.
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And demand will be a major factor in coming years. An aging population and higher fuel economy standards are keeping demand growth at bay, Kloza said.
Prices at the pump will vary by state.
"Florida ... has much lower inventories than normal thanks to expensive waterborne freight costs from Texas and Louisiana to Gulf Coast ports," Kloza said. "The entire East Coast might see higher prices relative to the rest of the country since we will be importing less gasoline than we have in recent years," he added.
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