Gasoline prices: Are they cheaper now?
Since the global peak in oil prices on March 8, two weeks after Putin’s War began, the United States has reduced its petroleum consumption by a small percentage. Although American data is superior to that of many other nations, the same process is likely taking place elsewhere. In the United States, gasoline and diesel are less common than other petroleum products including jet fuel, raw materials for plastics, and chemicals.
In today’s economy, gas is essentially a poor value-added item. The retailers are content to sell each gallon for a very small margin. If they are able to make a few pennies off of it, they will be pleased. They do intend to turn over as much of their inventory as they can.
Market experts predict that by the end of this year or early next year, most Americans’ gas costs could drop below $3 per gallon. Gas prices in the U.S. are currently lower than at this time last year, if only by a penny.
According to AAA, the national average price a gallon of petrol on Thursday was $3.329, which is almost a third less than the record high of $5.01 in mid-June.
In the last week, gas prices decreased by $0.15 per gallon, and by $0.47 from one month earlier. The cost of gas varies greatly by area; it is currently under $3 per gallon in most southern states, while California continues to have the highest price in the continental United States ($4.621), despite a $0.28 decrease in the previous week.
Significant gasoline Prices decrease may continue
Since demand normally declines following the busy holiday season, when individuals frequently have less energy and money to travel, several analysts predict that costs could fall below $3.00 on average.
According to Tom Kloza, global head of energy analysis at Oil Price Information Service, gasoline should decline below $3.00 for the majority of Americans until prices start to nudge upward in February when refiners start to develop summer blends.
Diesel prices are falling as well, but considerably more slowly; on Thursday, the price of a gallon of diesel was $5, down from $3.61 a year earlier. Unlike gasoline, demand for diesel is still strong.
Due to Russia’s significant oil and fuel exports to Europe, diesel is currently in limited supply throughout the world. The timing of the Chinese economy’s reopening from stringent COVID lockdowns, which would dramatically increase demand for oil and other commodities, is a wild card for prices. The cost of crude oil, which makes up slightly more than half of the price of a gallon of gas, and U.S. WTI front-month crude futures hit a new YTD low on Thursday, closing at $71.46 a barrel.
