During the peak summer driving travel period, the American people suffering from high inflation can temporarily feel relieved. U.S. gasoline prices have fallen for 70 straight days, the longest losing streak since January 2015.
According to data from the American Automobile Association (AAA), the current average retail price of gasoline in the United States is $3.892 per gallon, down 22.4% from the record retail price of $5.016 per gallon in mid-June.
Trading prices in the commodity futures market also reflected the sharp decline in gasoline over the past two months. On Monday, the U.S. NYMEX September gasoline futures closed down 4.2%, falling for two consecutive days, to close at $2.8912 per gallon, a new low since August 8, and a 32.4% drop from the closing record level set on June 9. %.
The drop in gasoline prices is undoubtedly good news for consumers. Two weeks ago, on August 10, the national average price of regular unleaded gasoline according to AAA fell below $4 per gallon for the first time since March. U.S. gasoline prices tended to peak in the summer at the time, but as the summer driving season ends around Labor Day in the U.S., gasoline sales typically drop sharply, and that’s also reflected in prices.
The media pointed out that the price of gasoline fell with the price of crude oil, the main component of gasoline cost. The relatively sluggish growth in fuel consumption this summer, coupled with widespread recession fears, have all contributed to the drop in gasoline prices. Meanwhile, the Biden administration’s release of emergency oil reserves of as much as 1 million barrels per day, which is planned to run until October, also helped to suppress high oil prices.
Earlier this summer, high fuel prices forced many to give up driving for vacations and make changes to their lifestyles. And falling gasoline prices have given them respite. Lower prices would also slow U.S. inflation, which had previously been at a four-decade high, and be a boon for Biden and Democrats ahead of the November midterm elections.
While current U.S. gasoline prices are still 23 percent higher than they were at the same time last year, the media predicts that the decline in gasoline may continue as the summer driving season ends.