Bbc Daily Service

The price of gas will rise significantly in 2017, but many people will have to pay more to keep up with that trend, according to a new report from the Federal Reserve Bank of New York.

The New York Fed said Wednesday that the average cost of a gallon of regular gasoline has gone up a staggering 10 percent since 2016, and that consumers will need to pay about $2,500 to keep the same amount of fuel in their vehicles.

The average price of regular gas in the U.S. has increased nearly 30 percent since 2012, and the Fed says the price of gasoline will be more than 10 percent higher in 2017.

The increase in the price is largely due to increased demand, but it will also make gas more expensive for many households, according the report.

The Fed also said that consumers can expect to see the price for gasoline rise significantly as well. 

Gasoline is now the second-most expensive fuel in the United States, behind only diesel, according a report from GasBuddy.com.

Consumers can also expect to pay a lot more for fuel, with an average price for a gallon rising to about $4.80 in 2017 from about $3.50 a few years ago, the report said.

“The rising cost of fuel is expected to accelerate as the economy recovers, which will have a direct impact on demand for gasoline,” the report added. 

The Fed is also expecting that the price will increase even further in coming years.

“We expect that gasoline prices will continue to rise over time as we recover from the severe downturn in energy demand,” it said. 

As the economy strengthens, the Fed said the cost of gasoline should decline, although consumers will be faced with more costs for fuel.

“If gas prices rise to reflect inflation, it would not be surprising to see prices decline as consumers use more fuel and consume more of the fuels that are priced higher,” the Fed noted. 

But the Fed warned that the prices for gasoline will increase significantly in coming decades as demand grows, and as other factors increase the demand for fuels, such as the growth in the economy. 

“The current price rise is driven primarily by higher fuel costs,” the New York Federal Reserve said.

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