Gas prices are steadily on their way down with some analysts predicting that they will be below $3 by the end of this year.
Key Details
- The average price for a gallon of regular unleaded gasoline is now at $3.29—down from $3.36 last year.
- And prices are drastically lower than the $5 average high that came in June of this year.
- Lower gas prices are a welcome sign for customers who are already spending more due to higher inflationary prices.
- If some analysts are right and gas prices fall below $3 by the end of the year, 2022 will mark one of the most volatile years for gas prices.
Why it’s news
Lower gas prices are always a welcome sign for motorists—but the lower prices are especially appreciated as Americans are now spending more on just about everything from food to housing.
The national average price may be $3.29, but the actual price in a given area can look drastically different depending on how far that location is from a refinery. All 50 states have experienced a price drop of varying degrees. Wisconsin, Indiana, and California saw the largest price drop, the Wall Street Journal reports.
Prices on diesel are also beginning to decline after they reached worryingly high prices. The nation’s supply chain depends heavily on transportation that uses diesel fuel. Additionally, many northeastern homes are heated with diesel.
The national average for a gallon of diesel is now below $5 a gallon. Some experts are predicting that diesel prices will continue to decline and fall below $4 a gallon by the end of the year.
Backing up a bit
Oil prices are dropping to the lowest numbers seen since December 2021—largely driven by concerns about demand.
Ongoing protests in China have raised some concerns that the demand for oil could drop, leading to producers preemptively lowering prices. Overall, global oil prices have decreased 35% as strict restrictions in China have kept demand relatively low.
Crude-oil prices are one of the largest determining factors on the price of gas in the U.S. If prices continue to decrease, Americans could finally see some relief at the pump.