While gas prices remain elevated compared to a year ago, most of us are paying at least $1 less per gallon than we did a few months ago.
As of Monday, the average gallon of gas was $3.96 a gallon, which is down from a June 14 peak of $5.02. As the U.S. maintains two straight months of falling gas prices, many motorists question how low gas prices will go?
U.S. Energy Secretary Jennifer Granholm expects gas prices to drop to an average of $3.78 a gallon in the fourth quarter of 2022. She cautioned that the projection assumes no additional disruptions to the oil supply.
“It can be impacted by what’s happening globally,” she said on CNN’s “State of the Union” on Sunday. “The president has done more than any president in history to make sure that the price insofar as he’s got control continues to decline, and it has included asking for increased production both domestically and overseas.”
Experts say both supply and demand impact gas prices. While the Biden administration pointed toward increasing supply for the price drop, AAA said decreased demand has driven the cost at the pump downward.
“Falling pump prices may eventually lead to more drivers hitting the road again,” said Andrew Gross, AAA spokesperson. “But that hasn’t happened yet. Instead, many drivers are waiting for prices to fall further before reverting to their typical driving habits.”
AAA said that oil prices have fallen, which has helped contribute to lower gas prices in recent weeks.