Gas Prices Are Going Down, Here’s How Long It Will Last
Gas prices have been consistently going down for weeks now. Find out if and how long the reprieve will last.
This article is more than 2 years old
Soaring gas prices have been a source of stress, worry, and contention for US residents across the country. At the beginning of June, prices skyrocketed to record-breaking levels, heavily affecting consumers’ wallets amid a sustaining period of intense inflation across all industries. However, recent weeks have shown that there may finally be a light at the end of the tunnel. The New York Times reported that gas prices have been falling consistently for 28 days in a row.
Gas prices have fallen at an average national rate of 15 cents per gallon per week for about four weeks straight now. At present, the national average is hovering at $4.61 per gallon. Which is a nice drop from the $5 threshold that was crossed just about a month earlier. The New York Times detailed that energy analysts have estimated that US residents are spending a collective $140 million less on gasoline compared to last month due to the price drops. Given that there are about 228.2 million registered drivers in the US, that equates to a savings of about $1.63 per person per fill-up.
In states like Texas, Ohio, Illinois, and California, the price drops in gasoline have been a bit quicker than in other states. Thus, residents of those states, on average, are saving a little bit more. Fortunately, for Californians, their state average fuel costs have finally dropped below the $6 mark. Additionally, while $1.63 savings per fill-up might not seem like a lot, it could make all the difference for families living paycheck to paycheck. Speaking from personal experience, I can remember times in my life when a dollar would mean the difference between getting a box of Macaroni and Cheese for dinner or not. Thus, any savings should not be discounted, especially in a market marred by such intense inflation.
Unfortunately, the downward trend in gasoline prices is one that is riddled with uncertainty. There is no security in this respite just yet. Metaphorically, in terms of gas prices, the country is still walking on eggshells. That being said, President Biden has taken steps to try and ensure this downward trend lasts as long as possible. On Twitter he urged oil companies, who are paying far less per barrel now, to translate those savings to the end consumer.
Moreover, the president has also taken steps to strengthen relations with the US’s oil suppliers in the Middle East. During in-person negotiations in the region, he vied for an increase in production as a means of keeping gas prices lower. Risks still remain that the trend could reverse itself, however. Patrick De Haan, head of petroleum analysis at GasBuddy, asserted that “We’re not completely out of the woods yet.” Some factors driving prices lower include a decrease in demand and the fact that many countries, including the United, have released some of their strategic oil reserves. If demand increases again at a time when the reserves need to be replenished then gas prices could start to climb once more. Right now, it’s a waiting game to see just how long this downward trend will last.
