Gas Prices in the US Falling Back to $4 Per Gallon, But It's Still Expensive in California

Gas prices in the U.S. are slowly coming going down, with some places in the country having an average of $4 per gallon.

That data was confirmed by a survey from the Oil Price Information Service (OPIS), claiming that nearly one in five gasoline stations in the U.S. are charging under the $4 mark, per CNN. OPIS is known to survey the gas pumps to compute price averages for the American Automobile Association (AAA).

Reports claimed that the ratio released by the OPIS equates to about 24,000 gas pumps across the country, mostly in the Southeastern region, and oil patch states, like Texas and Oklahoma.

"Almost no one cuts their price to $4.009, even though it's not much different," OPIS Global Head of Energy Analysis Tom Kloza said.

All in all, the national average has fallen 10% or 50 cents since hitting the record of $5.02 per gallon that occurred at least seven weeks ago.

The survey from OPIS also revealed that as of Monday, $3.999 was the most common price among the 130,000 gas pumps surveyed by the said agency.

CNN noted that the reason for the continuous lowering of gas prices was the decline in oil prices. The outlet added that worries about global recession crashing the oil demand is one of the major factors why driving oil and gasoline are getting lower.

As of Monday, AAA recorded that the nation's current gas average per gallon is at $4.521, which is lower compared to yesterday's average of $4.532. However, the current price is still cheaper than a year ago, with the gas price hitting $3.168 per gallon.

California Gas Prices Outstrips Average Cost

Although the survey from OPIS showed lower prices of gas, the state of California remains to have the highest amount exceeding the current average released by AAA.

AAA recorded that the current average of California gas prices is at $5.897, an amount more than a dollar higher than today's current gas price average nationwide.

But there are several reasons why California gas prices are continuing to be at the top of the high gas prices list.

California gas prices have always been higher than other states due to the gas tax implemented in the state. The regulatory programs aimed at reducing greenhouse emission in the state is also a factor in why the price of gas in the Golden State live up to its nickname.

New York Times also explained that California needs cleaner fuel that is only used in the state. Furthermore, the state's gasoline disruption due to Russia's invasion of Ukraine in February also plays a role in why their gas prices are high.

Biden Administration Expects Lower Gas Prices in the US

As the prices of gas go down on Monday, the Biden administration expects that they will continue to lower as the days go by.

According to National Economic Council Director Brian Deese, the White House expects that the prices of gas will continue to fall through the end of July, with hopes of prices hitting $4 nationwide, ABC News reported, citing CNN.

With today's gas prices in the U.S., Biden Economic Adviser Jared Bernstein said during a briefing on Monday that the average American driver is now saving $25 per month at the pump.

Monday marks the 34th consecutive day gas prices in the U.S. have fallen from the June 14 peak at $5.01 per gallon.

This article is owned by Latin Post.

Written By: Joshua Summers

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