For the first time in more than five months, gas prices dropped to slightly under $4, which is excellent news for customers who are dealing with high costs for many other necessities.
According to AAA, on Thursday, the national average price a gallon of normal was $3.99.
According to the car club, prices have decreased by 68 cents over the previous month and by 15 cents over the last week.
According to the shopping app GasBuddy, the national average was just $3.98 on Wednesday.
Since early March, the national average price of petrol has never fallen below $4.
According to AAA, prices peaked on June 14 at $5.02 a gallon.
The remainder of June saw a gradual decrease until they started to fall more quickly.
Drivers in California, Hawaii, and other Western states continue to spend more than $5 a gallon of gas.
Texas and a few other states in the South and Midwest have the cheapest gas prices.
The national average price per gallon was roughly $3.20 a year ago.
Although inflation is still very near to a four-decade high, consumers are already seeing some respite from lower costs for petrol, travel, and clothing.
Midway through 2020, as economies were beginning to recover from the pandemic’s first shock, oil prices started to rise.
When the United States and its allies launched sanctions on Russian oil due to Russia’s war against Ukraine, they soared once again.
However, however, oil prices have decreased due to worries about global economic development slowing down.
From above $120 per barrel in June, the price of U.S. benchmark crude oil has lately dropped to around $90 per barrel.
American drivers may be driving less as a result of high pricing. After tracking more closely to 2021 statistics earlier in the summer, gasoline demand was down 3.3% in the first week of August compared to the same period last year.
CBS News spoke with senior fellow at the Atlantic Council Ellen Wald “We have seen some of what we refer to as “demand destruction” – consumers refusing to purchase gasoline due to its high price.
Prices may be falling due to concerns that a worldwide recession is about to start.”
Prior to the mid-term elections in November, gas prices are sure to be a significant concern.
Republicans point to President Biden’s choices to revoke a permit for a significant pipeline and halt new oil and gas leases on federal lands as evidence that he is to responsible for the high cost of fuel.
A family with two vehicles may save $100 a month thanks to lower costs since mid-June, according to Mr. Biden’s remarks over the weekend.
He tweeted, “That’s breathing space. And we won’t be slowing down any time soon.
In his exchanges with oil firms, Mr. Biden has charged them with underproducing oil and gasoline while reporting enormous profits.
He said in June that “Exxon earned more money this year than God.”
Exxon claimed that oil output had risen. Chevron’s CEO said that Mr. Biden was attempting to disparage his sector.