Due to the high rates of inflation, in the middle of this year, Fuel prices reached their all-time high with an average of $5.02 per gallon of gasoline. Since then, the cost has been coming down drastically.
Currently, and according to figures from the American Automobile Association (AAA) the average cost of a gallon of gasoline in the american union It is at $3,214 dollars.
While this is a considerable drop, experts on the subject anticipate that the downward trend will continue, at least, until Christmas, so it is expected that the average of the prices fall below three dollars in certain states of the country.
“It is quite possible that the national average price of gasoline falls below $3 a gallon by Christmaswhich would be a great gift to motorists following a heady year at the pump,” said Patrick De Haan, head of oil analysis at GasBuddy.
By your side, President Joe Biden issued a message to celebrate the downward trend following having reached the historical maximum in June of this year.
“Most Americans can see the progress by driving down the street, finding relief at the pump as gas prices drop. Prices are now lower than a year ago, and half the gas stations sell gasoline for $3.09 or less. The most common price for gas stations across the country is $2.99″, expressed the leader of the White House.
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Why did gasoline prices fall?
One of the main factors in the price decline has been the drop in inflationsince it contributes to the slowdown of all sectors in general, including gasoline. Nevertheless, The price of crude oil is also another of the main drivers of the cost of gasoline.
Currently, The energy market faces its worst quarterly drop. Around mid year, West Texas Intermediate (WTI) futures peaked at $120 per barrel; nowadays, a barrel of WTI crude is around $70 dollars.
According to experts on the subject, The drop in crude oil contracts is the result of a decrease in demand, which in turn affects the cost of gasoline for all consumers. Under this line, the AAA warns that the situation can change at any time; that is, an increase in demand, would lead to another increase in fuel prices.
