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Gasoline prices in the US are cheaper than before the war in Ukraine

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Gasoline prices in the US are cheaper than before the war in Ukraine

Prices at the pump continue to fall, leaving average US gasoline below where it was when Russia invaded Ukraine.

A gallon of regular gasoline now costs $3.47 nationally, according to the AAA. That’s down from the $3.54 average on Feb. 24, the day Russia invaded Ukraine.

That’s down about 12 cents last week and 29 cents last month.

This week marks the first time since February that the national average has dipped below $3.50 a gallon. Gasoline prices rose in January and February as investors worried about disruptions caused by the Russian invasion of Ukraine.

A number of factors have led to the drop in fuel prices – and not all of them are positive. Fears of a possible recession and concerns over Covid-19 lockdowns in China hurt energy prices.

Other factors include less-than-expected disruptions to oil flows from Russia and the Biden administration’s record release of oil from emergency reserves.

While gas prices are still relatively high for this time of year, they have also completely reversed the spike caused by the war in Ukraine. That spike worsened inflation and set off inflation alarms around the world.

The national average is now down $1.55 since hitting a record high of $5.02 a gallon last June.

Looking ahead, some analysts see fuel prices continuing to fall, although there is still uncertainty about where oil prices will go due to questions over OPEC policy and China’s Covid lockdowns.

Andy Lipow, president of consulting firm Lipow Oil Associates, says the national average for gasoline could drop to $3.28 by Christmas. That would mean lower prices this Christmas than in the past.

GasBuddy, an app that tracks fuel prices, is even more bullish, saying this week that gas prices could drop below $3 a gallon by Christmas.

Patrick De Haan, GasBuddy’s head of oil analysis, said it would be a “great gift for drivers to unwrap after a dizzying year at the pump”.

Source: CNN Brasil

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