Gas Prices Falling Rapidly
The U.S. average is under $4 for the first time in months.
Via memeorandum I see that something called OilPrices.com reports “U.S. Gasoline Prices Drop Below $4 For The First Time Since March.”
The average U.S. gasoline price dropped on Tuesday to below $4 per gallon for the first time since early March this year, as supply has risen and concerns about the economy have grown, data from fuel-savings app GasBuddy showed today.
The national average is now back down to $3.99 per gallon for the first time since early March. Gasoline prices have been declining over the past few weeks, and the national average is now $1 a gallon cheaper than it was at its peak at $5.03 on June 14, GasBuddy noted. Falling international crude oil prices have been the main reason for the lower gasoline prices over the past weeks.
Anecdotally, I’m seeing the biggest spread in gas prices that I ever have since I started caring about such things—roughly 40 years now. Looking at my own GasBuddy app, I’m seeing prices for Regular ranging from $3.77 to $4.59 within a five-mile radius. And it was much more spread than that a week ago. There’s a Speedway station just before I get on I-95 on my morning commute that dropped from a high of $5.29 or so down to $3.35 or so almost overnight—and there were other stations that I would routinely pass that were nearly two dollars higher. Indeed, prices are so weird right now that the closest Costco—at which there’s always an insane line unless it’s very early in the morning—is $3.77–a level matched by maybe a dozen nearby stations.
Americans today will spend nearly $400 million less on gasoline than they did in mid-June, according to GasBuddy’s estimates.
Before oil prices started to drop in the latter half of June—due to fears of recession, concerns about oil demand, and snap Chinese lockdowns—gasoline prices in some areas in California were approaching the $7 a gallon mark, GasBuddy said.
It’s just insane that California prices are that much higher. I understand that they require a more environmentally-friendly formulation and have higher taxes but that’s a huge difference on an everyday commodity.
But since mid-June, the national average prices have dropped for 55 consecutive days until reaching $3.99 per gallon on Tuesday.
“We’ve never seen anything like 2022 at the pump, highlighted by once-in-a-lifetime events including the ongoing Covid-19 pandemic, which caused myriad imbalances, exacerbated by Russia’s war on Ukraine. As a result, we’ve seen gas prices behave in ways never witnessed before, jumping from $3 to $5 and now back to $3.99,” said Patrick De Haan, head of petroleum analysis for GasBuddy.
“While the recent drop in gas prices has been most welcomed, the issues that led to skyrocketing prices aren’t completely put to bed, and still could lead prices to eventually climb back up, should something unexpected develop,” De Haan added.
High gasoline prices have been a nightmare for the Biden Administration this summer. President Joe Biden is taking the credit for falling gasoline prices, saying last week in his most recent tweet on the matter that “Right now, a family in America with two cars is saving $100 a month on gas compared to peak prices. That’s breathing room. And we’re not letting up any time soon.”
It’s rather comical that Biden, who spent months more-or-less rightly telling us that the higher prices weren’t his fault, is now taking credit for the fall to prices that, had they not skyrocketed, people would be blaming him for. But that’s politics.