New York CNN store —
The big gasoline spike of 2022 has fully pulled back, giving consumers a big boost after a year of high inflation.
The national average for regular gasoline fell to $3.14 a gallon on Monday, according to AAA. Gas prices have not been this low since July 2021.
After rising steadily over the past year, pump prices skyrocketed in early 2022 following the Russian invasion of Ukraine. The national average hit an all-time record of $5.02 a gallon in June.
However, prices have now cooled and the decline has accelerated in recent weeks. According to the AAA, the national average for regular gas has fallen 12 cents over the past week and 54 cents over the past month. It’s an average of 17 cents cheaper to buy petrol than it was on the same date last year.
Patrick De Haan, head of petroleum analysis at GasBuddy, told CNN on Friday that the national average could fall below $3 a gallon by Christmas Eve.
Twenty-one states already have averages below $3 a gallon, according to the AAA, including Ohio, North Carolina and Colorado. In California, the state average for regular gasoline has fallen to $4.38, down from a record $6.44 in June.
The collapse in gasoline prices was caused by a variety of factors, including weak demand, recession fears, increasing supply and the absence of a major disruption to Russian oil flows.
Sandy Sherman, a resident of Olathe, Kansas, said the sharp drop in pump prices means he can use the extra money on clothing, groceries and other household items.
“Gas where I live has never come close to $5 a gallon, but anything over $4 a gallon is a big problem,” Sherman said. “We can only hope the decline continues!”