Prices at the gas pump have declined 10 cents in a week, according to AAA, which says recession fears and further releases of America’s strategic petroleum reserve (SPR) have contributed to the further declines.
On Monday, average national gasoline prices per gallon were $3,793, nearly 10 cents lower than this time last week.
The prices are less than one cent higher than they were a month ago, when the average was $3.700 per gallon, but still off the year-ago average of $3.385.
“Global recession fears coupled with the Biden Administration’s plan to continue tapping the Strategic Petroleum Reserve into December has helped temper oil prices,” said Andrew Gross, AAA spokesperson. “This will help take the pressure off pump prices, benefitting drivers and their wallets.”
The biggest drops in gasoline prices took place in Alaska, which saw a 33 cent fall in prices at the pump, followed by Calfironia (down 30 cents), Oregon (down 26 cents), Washington (down 24 cents, Nevada (down 20 cents) and Indiana and Michigan both down 15 cents.
Gasoline is now cheapest in the states of Georgia and Texas, where consumers are paying an average of $3.20 per gallon.
California remains the most expensive gasoline state, due to state taxes, with prices at the pump averaging $5.75 per gallon despite recent declines.
The price of gasoline is a crucial factor in November 4 midterm elections.
AAA notes that domestic gasoline demand is around 1 million barrels lower than at the same time last year, noting that better gas mileage could also be limiting demand and helping prices move downwards.
“If demand remains low and oil prices don’t spike, pump prices will likely keep falling,” the club stated.
By Julianne Geiger for Oilprice.com
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