Falling gas prices have helped boost some families’ budgets lately. Nationwide, gasoline prices have declined for seven straight weeks, with the average price of regular falling below $3 a gallon in 18 states.
Patrick DeHaan, head of petroleum analysis at GasBuddy, noted in a post on X that more expensive summer gasoline has been pulled from the market in 49 states, one reason motorists are seeing some relief at the pump.
Not even Hurricane Francine, which caused some Gulf Coast refineries to suspend operations for a couple of days, could raise the price of fuel. A big reason is ample supply and reduced demand.
According to AAA, the national average price of regular gasoline is $3.20 a gallon, seven cents less than a week ago, 23 cents less than a month ago and 67 cents less than a year ago. Mississippi has the cheapest regular gas, with a statewide average of $2.72 a gallon. California has the most expensive gas, with a statewide average of $4.77 gallon.
“There are an ever-increasing number of states east of the Rockies that have some retail gas locations selling regular for under $3 a gallon, so drivers will have more in their wallets with autumn approaching,” said Andrew Gross, AAA’s spokesperson. “Should the national average fall below $3, it will be the first time since May 2021.”
Maybe not all good news
Gasoline prices have declined in tandem with oil prices, which is great for consumers and businesses that rely on energy. It certainly makes the Federal Reserve’s inflation-fighting job a little easier.
But economists say the drop in oil prices can signal trouble in the economy. China has reduced its oil consumption in recent months as it struggles with growing economic issues.
A drop in oil prices has often coincided with a slowing economy. In April 2020, at the beginning of the COVID-19 pandemic, oil prices went negative at one point, with producers paying distributors to take the oil since they were running out of places to store it.
