The average price of gas in the United States falls below $ 5 per gallon

The average price of gas in the United States falls below $ 5 per gallon

Sunday’s average price was $ 4.98 a gallon, down from $ 4.99 in Saturday’s reading. The average price of gas was 5 dollars or more in the previous seven days, which is the first time that record prices have exceeded that limit. It reached a maximum of $ 5.02 a gallon on Tuesday and has fallen by a fraction of a penny every day since.

But drivers shouldn’t get too excited. Aside from the fact that the drop from $ 5.02 per gallon to $ 4.98 saves only 80 cents on a 20-gallon replenishment, it is very likely that this is only a temporary withdrawal of gas prices.

With many schools up and running and the summer travel season in full swing, gas demand – and prices – are likely to rise again soon. The average gas price could approach $ 6 later this summer given current market fundamentals, said Tom Klose, global head of energy analysis for DESCRIPT, which monitors gas prices for AAA.

“Everything goes from June 20 to Labor Day,” Klose said recently about the demand for gas as people set off on their long-awaited escape. “Hell, or high gas prices, people are going on vacation.

And it’s not like $ 5 a gallon of gas is a rarity now.

According to the DESCRIPTION, almost a third of the 130,000 gas stations in the AAA survey sell ordinary gas for more than $ 5. There are 17 states, plus Washington DC, where the average price is $ 5 or more, and New Jersey is only slightly behind with an average of $ 4,999. The state with the highest price remains in California, where gas costs an average of $ 6.40 per gallon.

Gas prices were falling much slower than they were before Tuesday’s record, confirming an old saying that gas prices are rising like a rocket and falling like a feather. In the two months before Tuesday’s record, the average price of AAA rose 58 times in 60 days, adding 94 cents to the national average. That’s a steady increase of almost 2 cents a day, compared to less than a penny a day as the price has fallen since Tuesday.

Gas and oil prices have been a major pressure on the budgets of many consumers. A typical American household buys about 90 gallons of gasoline a month, Klose said, so with the average price rising $ 1.91 a gallon last year, the increase costs a typical American household an additional $ 172 a month or more.
There are early signs that high prices could force consumers to reduce consumption at other sellers, raising fears that this could be a factor causing the economy to slide into recession.

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