This is why gas prices are falling

New York
CNN Business

Pump prices continue to fall, providing relief to inflation-tired consumers and an economy mired in a slowdown.

The national average for regular gasoline fell three cents to $4.16 a gallon Wednesday, according to AAA. That marks the 50th consecutive day of falling prices.

Gas prices have fallen 86 cents since hitting a record high of $5.02 on June 14. In the past month alone, the national average has fallen by 65 cents.

Nineteen states have average gas prices of less than $4, according to AAA, including Ohio, Iowa and Wisconsin.

The steady decline in gas prices has been driven by multiple factors, including fears of a recession that has pushed oil prices down and some Americans driving less as gas prices rose above $5 a gallon.

“When people pay and they see $100 on the bill, they panic and have a stroke,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service.

Kloza also praised the Biden administration’s unprecedented release of emergency oil from the Strategic Petroleum Reserve, although he admitted it is difficult to quantify the impact.

Whatever the cause, falling prices at the pump give a boost to consumers struggling with high prices for food, rent and everyday items.

While the average price nationally is $4.16 a gallon, the figure noted by Kloza is boosted by high prices in places like California. The median price, on the other hand, is $3.99, according to OPIS.

Some analysts argue that prices will continue to fall, especially as the summer driving season comes to an end.

“This streak has more room to run,” said Kloza.

Andy Lipow, president of consulting firm Lipow Oil Associates, expects the national average to fall to $4.10 a gallon in the next seven to 10 days and $4 by Labor Day.

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