Here’s why gas prices are low

New York
CNN Business

Prices at the pump continue to fall, providing relief to consumers fatigued by inflation and The economy plunged into a slowdown.

The national average for regular gasoline It fell three cents to $4.16 a gallon On Wednesday, according to AAA. This marks the 50th consecutive day of price drops.

Gas prices are down 86 cents since hitting a record average high of $5.02 on June 14. Over the past month alone, the national average has fallen by 65 cents.

Gas prices in nineteen states average less than $4, including Ohio, Iowa and Wisconsin, according to the AAA.

The continued decline in gas prices has been driven by several factors, including recession fears that have occurred Oil prices fell And the fact that some Americans cut back on driving when gasoline prices rose above $5 a gallon.

“When people pay the $100 bill, they panic and have a stroke,” said Tom Kluza, global head of energy analysis at the Oil Price Information Service.

Kloza is also credited with Unprecedented release of emergency oil by the Biden administration of the Strategic Petroleum Reserve, although he acknowledged that it is difficult to quantify the impact.

Regardless of the cause, lower prices are at the pump giving a boost to consumers grappling with rising food prices, rents, and everyday items.

Although the national average price is $4.16 per gallon, Kloza has upped the notable number due to higher prices in places like California. On the other hand, the average price is $3.99, according to OPIS.

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Some analysts argue that prices will continue to fall, especially as the summer driving season approaches.

“This line has more running room,” Kloza said.

Andy Lipow, president of consultancy Lipow Oil Associates, expects the national rate to fall to $4.10 a gallon in the next seven to ten days and $4 by Labor Day.

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