In the US, average gas prices fell below $4 a gallon for the first time since March, after falling steadily from a peak of $5 a gallon in June.
As of Friday, August 12, the average price for a gallon of regular gasoline is $3.98, according to the American Automobile Association (AAA).
But that doesn’t mean drivers are still below the $5 threshold in all states. Hawaiians currently pay the most for gasoline, which averages $5.39 a gallon in their state. In California, the current price of a gallon of gasoline is $5.38, although it’s down from over $6 a month ago.
Over the past week, Colorado, Arizona, Illinois, Maine, Ohio, Kansas and West Virginia had the biggest price declines, worth 18 cents a gallon or more, according to the AAA.
Here’s a look at the price range by state:
Why are gas prices falling?
There are many reasons for the fall in gas prices, but primarily it’s related to falling crude oil prices, which account for around 50% of consumer prices, according to the US Energy Information Administration (EIA).
Crude oil prices are sensitive to economic slowdowns, which is likely driving the overall fall in demand. West Texas Intermediate Crude, the US oil benchmark, fell to just over $94 on Thursday from $130 a barrel.
Other reasons include reduced demand from drivers affected by the price shock and government gas tax holidays.
However, the fall in prices might not last, especially if unforeseen events like hurricanes or the war in Ukraine further impact oil supplies.
According to a forecast released on Tuesday, the EIA expects the cost of retail gasoline to average $4.29 a gallon through September. That price is then expected to drop to an average of $3.78 per gallon for the rest of the year.
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