U.S. gas prices fell below $4 a gallon for the first time since March after peaking at $5.02 in June.
Summary
U.S. gas prices fell below $4 a gallon for the first time since March after peaking at $5.02 in June.
- Gas prices dropped 15 cents over the past week and 68 cents in July, according to AAA. The national average remains 25% higher than the $3.18 national average in August 2021.
- The continuous price decline since June may have helped slightly ease price inflation in July. The inflation rate was 8.5 percent in July, still a staggeringly high number but lower than June’s 40-year-high of 9.1 percent.
- White House Press Secretary Karine Jean-Pierre was quick to claim credit for falling gas prices, even though the administration again blamed the price of gas on Vladimir Putin just six weeks ago.
- Republicans attribute the price spike to President Joe Biden’s policies, pointing to his decision to cancel the Keystone XL pipeline and suspend new oil and gas leases on federal lands.
- Gas prices remain far below the average gas price on January 20, 2021: $2.39 per gallon.
- The New York Times outlined three drivers of the price decline: weaker demand due to record high prices, a drop in global oil prices, and the suspensions of several state gasoline taxes. None of the three factors can be directly attributed to any actions by the Biden administration, no matter how eagerly they seek to claim credit.
- NPR identified four factors that will determine where prices will go in the future: oil demand, global oil supply, Russia’s war in Ukraine, and weather. The U.S. crude oil industry is largely based on the Gulf Coast and is therefore vulnerable to hurricanes.
- USA Today wrote four of the five states with the highest average gas prices are on the West Coast. Hawaii and California both average nearly $5.40 per gallon, while Oregon, Nevada, and Alaska have average gas prices of around $4.90.
- The Wall Street Journal reported consumer demand for gasoline declined by 3% in the first week of August compared to the first week of July as many Americans cut back on driving due to soaring prices at the pump.
- The Washington Examiner pointed out the national gas price average is still 80 cents higher than the average price one year ago.
- National Review noted gas prices are falling at different rates in different states. Twenty states are below $3.99, and southern states like South Carolina, Tennessee, and Texas have prices as low as $3.49 per gallon.
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© Dominic Moore, 2022
