Gas prices fall just below $4 for the first time in 5 months

• US gas prices fell just below $4 for the first time in five months.
• Prices are down 15 cents in the last week and 68 cents in the last month.
• Yet inflation is still near a four-decade high.

Good news for consumers struggling with high prices for many other essentials as US gas prices fell just below the $4 mark for the first time in more than five months.

The American Automobile Association (AAA) said on Thursday, August 11, that the national average for a gallon of regular gas was $3.99, according to The Associated Press.

Gasoline prices fall in the US

Prices are down 15 cents in the last week and 68 cents in the last month, according to the auto club. GasBuddy reported that the national average had already dropped to $3.98 on Wednesday. Falling prices for gasoline, airline tickets and clothing are giving consumers some relief, though inflation is still near a four-decade high.

Oil prices began to rise in mid-2020 as economies recovered from the initial shock of the coronavirus pandemic. They rose again as the United States and its allies announced sanctions against Russian oil over Russia’s war against Ukraine.

What is the reason for the drop in oil prices?

Recently, however, oil prices have fallen due to concerns about slowing economic growth around the world. Benchmark US reported that crude oil recently fell to nearly $90 a barrel from over $120 a barrel in June.

High prices may also be causing American motorists to drive less. Gasoline demand in early August was down 3.3% from the same week last year after more closely tracking 2021 figures earlier in the summer. Filed Under: US gasoline price

Who could be to blame for high gas prices

Pump prices are likely to be a major issue heading into the November midterms. Republicans blame President Joe Biden for high gas prices, taking advantage of his decisions to cancel a major pipeline permit and suspend new oil and gas leases on federal land.

Biden said over the weekend that a two-car family is saving $100 a month because prices are down from their peak in mid-June. «That’s a breather,» he tweeted. «And we’re not going to budge anytime soon.» Filed Under: US gasoline price.

Motorists in California and Hawaii continue to pay more than $5

Biden has also sparred with oil companies, accusing them of not producing as much oil and gasoline as they could while making huge profits. «Exxon made more money than God this year,» he said in June. Exxon said it has increased oil production. The Chevron CEO said Biden was trying to vilify the industry against him.

The AP reported that the national gas average hasn’t dipped below $4 since early March. Prices topped $5.02 a gallon on June 14, according to AAA. They slowly declined for the rest of June, then began to fall more rapidly. Motorists in California and Hawaii are still paying more than $5, and other western states are paying close to that. The cheapest gasoline is in Texas and several other states in the South and Midwest. A year ago, the national average price was about $3.20 a gallon. Filed Under: US gasoline price