The average national price for a gallon of gas has dropped for 50 straight days since its record high of $5.02 mid-June, falling 86 cents to $4.16 Wednesday as oil prices tumble, although it’s fallen less than 40 cents in four states, and remains over $5 a gallon in five.
A gallon of gas still averages more than $5 in California ($5.56), Hawaii ($5.43), Alaska ($5.06) Nevada ($5.05) and Oregon ($5.03), according to AAA data.
Gas is cheapest in Texas, where a gallon averages $3.67, followed by Georgia ($3.72), Arkansas ($3.73), Mississippi, Oklahoma and Tennessee (each $3.74).
The smallest drop from a month ago was in Hawaii, where an average gallon fell just 19 cents (from $5.62 to $5.43) — the smallest decrease by far — behind Idaho’s 38 cent drop (to $4.87), Maine’s 39 cent drop (to $4.56) and New York’s 40 cent drop (to $4.50).
Indiana had the biggest decrease from a month ago, dropping 81 cents (from $4.90 to $4.09), followed by Michigan’s 80 cent drop (to $4.15), Oklahoma’s 78 cent drop (to $3.74) and Illinois’ 77 cent drop (to $4.56).
The price of West Texas Intermediate crude hit $92.29, down $4 from a week ago, but well over the $70.56 a year ago.
National gas prices had skyrocketed in the months leading up to the June 14 peak, rising 9.9% from May to June, according to data from the Bureau of Labor Statistics. Economists attribute it to several factors, including Russia’s invasion of Ukraine and President Vladimir Putin’s efforts to cut off gas as retaliation for western sanctions, sparking a global rise in energy costs. The spike also coincided with a steep decline in demand. The International Energy Agency estimated last month that global gas demand will rise by 140 billion cubic meters from 2021 to 2025, less than half the amount previously forecasted. The Federal Reserve raised interest rates(twice) in an effort to curb record inflation — which hit a 40-year high — as economists warn the country is headed towards recession.
“The current drop in gas prices continues to be the fastest decline in over a decade,” President Joe Biden tweeted Wednesday.
By Brian Bushard, Forbes Staff