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U.S. Gasoline Prices Set To Fall Below $4
(CTN News) – The national average gasoline prices in the United States collapsed to $4,605 on Thursday. GasBuddy’s Patrick de Haan expects it to drop below $4 by mid-August.
“Americans will spend $165 million LESS on gasoline Prices today than a month ago,” de Haan states. According to him, the national average should drop to $3.99 by August 14.
As de Haan noted on Twitter Thursday, the national average “rarely” moves down this much per day, which would make it the biggest decline in a single day in a decade.
Based on AAA prices, Thursday’s national average of $4.605 was lower than Wednesday’s $4.631.
There was a national average of $5.016 at the pump a month ago. Prices have dropped 9.8% since then.
Gasoline prices fell to their lowest level since mid-May on Thursday.
Gasoline prices are falling due to fears of recession and another large interest rate hike.
Gasoline demand has fallen in the United States because of soaring prices.
The latest Short-Term Energy Outlook from the Energy Information Administration (EIA) forecasts a 2.2% decrease from June and a 4.8% drop from pre-pandemic July 2019. During the months of July through October, the EIA now forecasts lower gasoline demand than earlier.
The EIA forecast $4.05 per gallon for gasoline in 2022, $3.57 for diesel in 2023, and $4.73 for gasoline in 2022, and $4.07 for diesel in 2023 in its short-term outlook published on July 12th.
According to de Haan, the consecutive declines in gasoline prices may last a fifth week, as long as oil prices remain cooperative and do not rise above $105 a barrel, and as long as refinery production of gasoline Prices remains strong.
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