Topline
The average price for a gallon of gas dipped below $4 on Tuesday morning for the first time in the U.S. since March, according to fuel pricing platform GasBuddy, a welcome milestone as prices continue to fall dramatically from their all-time highs.
A customer pumps gas at an Exxon gas station on July 29, 2022 in Houston, Texas.
Key Facts
The average price for a gallon of gas is $3.999, GasBuddy reports, a stark 20.5% decline from the June 16’s all-time high of $5.034.
Tuesday marks the 55th straight day of declining prices at the pump, according to Patrick De Haan, GasBuddy’s head of petroleum analysis.
The nation’s other leading gas price tracker AAA still estimates the average price for a gallon of gas is $4.033, and AAA reports the average price is still over $4 per gallon in 26 states and Washington, D.C., led by California at $5.420 and Hawaii at $5.417.
Gas is the cheapest in the Southeast and is the lowest in Texas ($3.482), Oklahoma ($3.518), Arkansas ($3.542), South Carolina ($3.546), Mississippi ($3.576), Tennessee ($3.579), Georgia ($3.579), Louisiana ($3.601) and Alabama ($3.602), according to GasBuddy.
Contra
Gas prices are still up 82 cents compared to a year ago and $1.72 from the 2022 low of $3.279 on January 2, according to GasBuddy.
Key Background
Gas prices exploded after Russia’s invasion of Ukraine in February threatened global crude oil supply, and broke the $4 mark in March for the first time in the U.S. since 2008. In June, the average price for a gallon of gas domestically surpassed $5 for the first time ever. Lower prices at the pump may come as a relief for consumers amid record inflation, but why the drop is happening is more dubious, as it is largely tied to falling crude oil prices amid global recession fears. The price for international benchmark Brent Crude was $97.77 Tuesday, down 29.7% from its 14-year peak in March, while U.S. benchmark West Texas Intermediate traded at $91.72, also down 29.7% from its 2022 high in March.
Further Reading
U.S. Gas Prices Drop Close To $4 A Gallon—Here Are The States Where It’s Already Cheaper (Forbes)
Gas Nears $4 A Gallon Amid 50-Day Drop: Here’s Where Prices Are Lowest (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2022/08/09/gas-falls-below-4-a-gallon-for-first-time-since-march/