Average U.S. gasoline price falls below $4, first time in 5 months
DALLAS — Gasoline prices have dipped under $4 for the first time in more than five months — good news for consumers who are struggling with high prices for many essentials.
AAA said the national average for a gallon of regular was $3.99 on Thursday, down from the mid-June record of $5.02. However, that’s still about 80 cents higher than the average a year ago.
President Joe Biden touted the sub-$4 gas on Thursday.
“That’s over one dollar down from peak prices,” he tweeted. “And I’m not done calling on oil producers to increase global supply so prices can drop even more.”
Glen Smith, a for-hire driver, sized up the price — $3.85 a gallon — while waiting between rides at a gas station in Kenner, Louisiana.
“I’m not tickled pink, but I’m happier it’s less than what it was,” Smith said.
Recently, oil prices have dropped on concern about slowing economic growth around the world. U.S. benchmark crude oil has recently dipped close to $90 a barrel from over $120 a barrel in June.
It is unclear whether gasoline prices got so high that consumers cut back on their driving. Some experts believe that is true, although they say the evidence is largely anecdotal.
“I don’t know that $5 was the magic amount. I think it was the amount of increase in a short period of time,” said Peter Schwarz, a professor at the University of North Carolina at Charlotte. “People were starting to watch their driving.”
The average gas price has dropped 58 straight days, but that streak will end soon, predicted Tom Kloza, head of energy analysis at the Oil Price Information Service. He noted that it’s still early in the hurricane season, which in the past has shut down some of the nation’s biggest refineries.