Gas prices are falling across the country, giving Americans a tiny bit of relief as the nation manages a technical recession.
In Maine, prices fell for the eighth consecutive week to an average of $4.46 per gallon, according to WGME 13. In Los Angeles, drivers saw the lowest gas prices at the pump since Mar. 7, when the state’s average hit $5.48, the LA Times reported.
The national average of gas dropped to $4.05 the week of Aug. 8 and experts believe prices will continue to decline if there are no natural disasters like hurricanes, etc.
“The national average is poised to fall back under $4 per gallon as early as today as we see the decline in gas prices enter its eighth straight week,” Patrick De Haan, the head of petroleum analysis at GasBuddy, said in a statement. “By the end of the week, one hundred thousand stations will be at $3.99 or less.”
“There’s been a lot of flare-ups and geopolitical tensions that could weigh on markets at some point,” De Haan added. “For now, we have pretty good odds that LA will get under the $5 mark, but it will take time.”
According to an analysis by AAA, the decrease in gas prices is driven by a slowing economy, a decline in crude oil prices and a change in consumer driving habits in response to the high prices.
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A recent survey shows 64 percent of American adults have changed their driving habits or lifestyle to cope with inflated gas prices.
“Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices,” AAA spokesperson Andrew Gross said in a press release. “Couple that with fewer drivers fueling up, and you have a recipe for gas prices to keep easing. It’s possible that the national average will fall below $4 this week.”
Data from the Energy Information Administration (EIA) shows the demand for gas dropped from 9.25 million b/d to 8.54 million b/d last week.
“The rate is 1.24 million b/d lower than last year and is in line with the need at the end of July 2020 when COVID-19 restrictions were in place and fewer drivers hit the road,” the release states.
While gas prices have been declining, prices are still 87 cents higher than last year’s. De Hanna advised that consumers still exercise caution.
“While I’m upbeat the drop can continue for another couple weeks, we’re starting to see some activity in the tropics, which may increase risk of potential disruption,” De Haan said.
Inflation dropped to 8.5% in July (down from 9.1% in June).
Big declines in gas prices (-7.7% in July) and airfares (-7.8% in July) helped a lot.
But…grocery prices, rent and electricity continue to rise pic.twitter.com/sVO5dr6eco
— Heather Long (@byHeatherLong) August 10, 2022
PHOTOS: A motorist fills up the gasoline tank of a vehicle and the price per-gallon is illuminated above the various grades of gasoline at a Shell station in Commerce City, Colo. (AP Photo/David Zalubowski)
