U.S. gasoline prices fall below $4 per gallon, first time in 5 months

U.S. gasoline prices

U.S. gasoline prices

For the first time in five months, the average cost for gasoline in the United States is below $4 per gallon, the AAA said.

The national average on Thursday was $3.99 per gallon. It’s the first time the average has been under $4 since March.

Prices at the pump have been tumbling for about two months after hitting an all-time high — $5.02 per gallon — in the middle of June.

It’s another sign of relief for American consumers as hot-running inflation is showing more signs of waning.

Thursday’s national average is 2 cents lower than it was Wednesday, 15 cents cheaper than a week ago and 69 cents less than a month ago, according to AAA. It still remains a bit higher than the average of $3.18 per gallon from a year ago.

Experts say there are three primary reasons for the falling gas prices — lower demand, less-expensive oil and more domestic oil released by President Joe Biden from the national strategic reserve.

Biden’s decision to allow the sale of E15 during the summer months has also had an impact on prices.

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The chief reason, they say, is the lower cost of oil.

The cost of both West Texas Intermediate and Brent Crude have fallen by more than 20 cents per barrel over the past few weeks.

Also, demand for gas is down. Data from AAA and the Energy Information Administration says demand is similar to what it was in July 2020, when COVID-19 restrictions were in place.

California has the most expensive gas in the United States, at an average of $5.38, followed by Hawaii ($5.39) and Alaska ($4.95).

The least expensive gas is in Texas ($3.49), Arkansas ($3.53) and South Carolina ($3.54), according to AAA.

Falling prices have also been seen in other places, including the cost of airfare.

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