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United States Gas Prices Lower Now Than a Year Ago

In the United States currently, gas, on average is at a lower price than a year ago. The summer was a particularly rough month for Americans when it came to filling up their tanks due to the rapid rates of inflation, as well as the elevated prices of oil marked by Russia’s invasion of Ukraine. The country’s average as of Thursday is about $3.33, which is now lower than last year’s average of $3.34.

Earlier This Year

Gas prices have now seen their lowest rates since January. February was a massive month in the gas price shift due to the ongoing feud between Russia and Ukraine, as many turned away from Russian fuel in protest. In June, gas prices peaked at more than $5 per gallon, but since, prices have been slowly on the decline as we have seen many measures taken by state and federal governments to combat the issue.

A month ago, West Texas Intermediate oil was selling at around $89 per barrel, compared to Thursday, they are now selling at around 74% per barrel. Among the reasons for the lower prices, Patrick De Haan, head of petroleum analysis at GasBuddy said, were reduced oil demand as a result of lockdowns related to COVID-19 in China, economic concerns as the Federal Reserve expects to raise rates, and high levels of activity at refineries.

Demand is Low

“Demand is much lower right now in China,” said De Haan. “That’s really the biggest concern of the market right now, it’s just that oil demand globally is soft.” He also went on to mention that prices at the pump have a ways to go to reach any parity with the decline in crude oil. The national average price of gas is “likely” to drop below $3 per gallon, which is hoped to occur “right around Christmas.”

Wrap Up

To most, if not all Americans around the country, this is great news, especially coming right around the holidays. Many will be able to start pumping less money into their cars, and more into their Christmas gift shopping.

 
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