Study: Gas prices will jump as economy recovers

One of the few silver linings of the COVID-19 pandemic has been very affordable prices at the pump.

With millions of Americans sheltering at home to one degree or another, a large segment of the workforce (including me) occupying home offices, and schools shifting to online instruction, there was a significant drop in demand for refined fuels in 2020.

As a result, the national average price of gasoline fell for the second straight year. The one-year average drop of 45 cents per gallon in the U.S. was the largest since 2015, when the average per-gallon price fell 94 cents.

Here in the Cape Girardeau area, prices were well below the $2 per gallon mark for most of 2020.

But as we transition into 2021, economists are predicting gas prices to jump as we (hopefully) return to our pre-pandemic driving patterns later this year.

As more and more Americans are vaccinated against coronavirus, the expectation is more and more of us will hit the road as schools resume in-person classes, offices reopen, and leisure travel regains popularity.

I read a forecast last week from GasBuddy, a travel and navigation app focused on fuel savings. According to the GasBuddy analysis, the average price for a gallon of unleaded gasoline in the U.S. could hit $3 per gallon this year as the economy recovers from the COVID-19 stranglehold.

In terms of overall expenditures, GasBuddy predicted the nation's 2021 gasoline bill will rise to nearly $326 billion, an increase of more than $45 billion over 2020s total expenditure. That means the average household will see its annual gasoline spending increase to $1,670.

As a result, we could see fewer sales of pickup trucks, large SUVs and other vehicles with lower-than-average MPG ratings, and more sales of smaller, more fuel-efficient vehicles in 2021.

You can read GasBuddy's complete 2021 fuel cost analysis at www.tinyurl.com/2021-fuel-outlook.

As for me, I'll keep working from home, at least for now.

Restaurant briefs

A backhoe removes debris from the south side of Watami, 45 S. Kingshighway, on Thursday in Cape Girardeau. The restaurant is undergoing a remodeling and expansion project slated for completion by the end of April.Jay Wolz

Several readers called me last week wondering whether Watami, the hibachi restaurant on the northwest corner of the William Street/Kingshighway intersection in Cape Girardeau, was being demolished.

The answer is "only partially."

I stopped by the restaurant last week and was told by an employee of Ainsworth Construction the south side of the restaurant has been razed in order to make room for an expansion of Watami's bar area and other sections of the restaurant.

The project, he said, should be completed by May 1.

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Speaking of restaurants, it appears the long-awaited Chili's restaurant at the intersection of Route K and South Mount Auburn Road in Cape is nearly complete and should open shortly.

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A banner in front of the Rally's drive through construction site on North Sprigg Street is Cape Girardeau includes information about how to apply for employment at the fast-food outlet.Jay Wolz

As for construction of another restaurant, the new Rally's drive through on North Sprigg Street across from the Show Me Center in Cape Girardeau is nearing completion. Applications are now being accepted from would-be employees.

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Finally, under the heading of eateries, I understand plans are in the works for a fast-food franchise restaurant at the intersection of North Kingshighway and North Mount Auburn Road, presumably on the vacant lot just south of Elias Ace Hardware in Cape.

More on this as details develop.

Worth a read

In case you missed it in our Weekend edition, Missourian writer Maria Swan Childress penned an insightful front-page business feature about how one of the region's largest employers, Procter & Gamble, managed to weather the COVID-19 pandemic while responding to unprecedented demand for the company's products.

You can find the story here.

For more business news, check out B Magazine, and the B Magazine email newsletter. Go to www.semissourian.com/newsletters to find out more.