Gas prices could fall back below $4 a gallon

Gas prices continue to fall in the United States and barring any major catastrophic events that could send them soaring again, consumers may soon breathe a sigh of relief as analysts say prices may return below $4.00 a gallon soon .

The average price per gallon in the United States, which AAA estimates at $4.38, has been falling steadily over the past few weeks. While West Coast states are still seeing sky-high prices averaging above $5.00 a gallon, states in the Southeast US have already started to see average prices falling below $4.00, with Texas currently leading at $3.88 lowest average price per gallon. Based on AAA models, Arkansas, Louisiana, Mississippi, Alabama, Tennessee, Georgia and South Carolina also have average prices under $4.00 per gallon.

Now experts say consumers across the country could expect similar price averages through October, barring a crisis that pushes costs up again.

“If the oil market stays at these levels, we could see the national retail price of gas fall below $4 a gallon by the end of October,” said Andy Lipow of Lipow Oil Associates via Yahoo! finance. “That’s a long time from now and in between we have a hurricane season and we have yet to see the impact of the European Union’s phased ban on Russian oil purchases. But there is reason for optimism.”

Lipow’s comments come after other pundits predicted the fall could arrive before the end of summer, Patrick de Haan, head of petroleum analysis at Gas Buddy, told NBC in early July.

However, other analysts have warned that prices could reverse again, with prices potentially tripling over the same period as October if Russia halted supplies entirely.

If prices do drop, it would be a significant relief to consumers who are grappling with increased prices at the pump, which have skyrocketed in the wake of the Russo-Ukrainian war. However, it still has some way to go from last year’s prices, which were $3.15 a gallon nationally a year ago, according to Fox 29.

Gas prices are known to have fallen significantly in the wake of the COVID-19 pandemic. According to the US Energy Information Administration, the average price per gallon fell to US$1.93 in April and May 2020 in the US, respectively, as demand fell significantly.

Since pandemic restrictions were eased in late 2020 and throughout 2021 and inflation began to rise, prices have risen significantly, averaging above $3.00 per gallon for the first time in May 2021.

The average price per gallon in June was over $5.03 per gallon, the highest level since EIA began tracking prices in April 1993.


Photo: GETTY IMAGES NORTH AMERICA via AFP/JUSTIN SULLIVAN Gas prices could fall back below $4 a gallon

Fry Electronics Team

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