According to industry data, the national average retail price of gasoline in the United States is less than it was a year ago as a result of a sustained fall in crude oil prices since the beginning of November.
journey club Regular unleaded gasoline had a retail average price of $3.35 per gallon, the same as it did at this point in 2021, according to AAA. Prices at the pump fell below year-ago levels for the first time in over two years, which is consistent with larger developments in the commodities markets.
The price of Brent crude oil, which serves as the industry standard, was down on Wednesday at roughly $78.30 per barrel during midday trading. At the beginning of November, the price of Brent was trading closer to $98 a barrel. Around $3.80 was the retail price of gasoline at the time.
GasBuddy’s senior petroleum analyst, Patrick DeHaan, said from Chicago that retail gasoline prices have fallen for the fourth consecutive week and are at their lowest levels since January, just before Russian military forces invaded Ukraine.
The national average might very well fall under $3 per gallon by Christmas, he added, adding that every state had experienced a decline in average gasoline prices over the previous week.
A decision by the Organization of the Petroleum Exporting Countries to reduce collective production quotas, a new price restriction on Russian oil, and a European prohibition on waterborne crude oil imports from Russia all contributed to a sharp increase in crude oil prices during early trading on Monday.
However, the surge was only able to last until midday before supply-side problems took precedence over looming worries of a recession. With Texas hitting the low-water mark at $2.77 per gallon, there are currently a few states around the US Gulf Coast that sell gasoline at retail prices below the $3 threshold.
With a gallon of gasoline costing $4.66 in California, the highest price in the contiguous United States, Governor Gavin Newsom has proposed legislation that would penalize energy companies for not passing along record profits to consumers.
But aside from the price of crude oil, the cost of transportation, state taxes, and refinery charges also have a significant role in what consumers pay at the pump. The price of Brent crude oil is predicted by the federal government to decrease from an average of $101.48 this year to $92.36 in 2023.
The average retail price of gasoline for the entire year of 2022 is expected to be $3.99, but that figure will fall to about $3.50 the following year.
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