US Petrol Prices Are Below $4 A Gallon For The First Time Since March
According to the American Automobile Association, gas prices in the United States have now fallen for eight straight weeks.
After prices soared to record highs earlier this year, American drivers received some much-needed relief on Thursday when gasoline prices fell below $4 a gallon.
The national average price of regular unleaded petrol fell to $3,990 a gallon (3.8 liters) on Thursday, according to the American Automobile Association. For the eighth week in a row, petrol prices have fallen.
US Petrol Prices Are Below $4 A Gallon For The First Time Since March
During the busy summer driving season, the prices at the pump peaked at a record $5.02 per gallon in June, which caused drivers to buy less fuel at the pump despite the high prices.
The price of oil and gas has been declining in recent weeks as uncertainty surrounds the US economy and with the administration of President Joe Biden reinforcing supply by releasing millions of barrels from the US Strategic Petroleum Reserve (SPR).
There was an increase in crude prices earlier this year after economies began to open up after their pandemic-induced lockdowns that had shuttered businesses and halted travel had ended.
As a result of Russia’s invasion of Ukraine in February, crude prices soared as well.
The global benchmark price of Brent crude oil, the main driver of petrol prices, reached $139 a barrel at one point in time. On Thursday, it was trading at a price of $98.
As inflation continues to take a bite out of the spending power of many Americans who live on the edge, the fall in prices has been a huge relief to millions of them.
There has been an increase in the price of food and housing in recent years.
Some states are experiencing more relief at the pump than others when it comes to fuel prices.
Taking the state of California as an example, petrol prices are still hovering around $5.38 per gallon in the state of California.
On the other hand, people in Texas are seeing a gallon of gasoline going for an average of $3.49 per gallon.
The November elections and the price of petrol
There is a possibility that the recent drop in gas prices at the pump could help Biden’s administration, as well as Democrats in Congress, in the upcoming midterm elections in November.
Even in the face of alarming warnings from seasoned economists, Vice President Biden continues to insist that the US economy is in good health.
In response to the record high prices at the pump, the White House has taken several steps in an attempt to reduce them.
More than 180 million barrels of crude oil have been released from the US emergency stockpile by Vice President Biden, according to the White House.
The Treasury Department reported in July that the SPR release, together with the releases made by members of the International Energy Agency, resulted in a reduction of 17 cents to 42 cents per gallon in the price of petrol or gasoline.
According to President Biden, even though people are still in pain and inflation is beginning to abate, there are signs that the situation is improving.
It is important to note that the consumer price index (CPI) – a major indicator of inflation – rose by 9.1 percent in June. As a result, that was the highest reading since 1981.
On Wednesday, however, fresh US data revealed that the CPI rose by 8.5 percent in July, still a high level, but a decrease from June’s 9.1 percent rise.
This can largely be attributed to a fall in the price of petrol which has contributed to a cooling of inflation.