(Washington Insider Magazine)-Have you noticed a dip in gas prices at the pump? If so, you’re not alone. Millions of citizens were pleasantly surprised at the drop in price, which many took as the possible end to the summer gas spikes over the first half of the season in 2022.
Currently, the AAA has recorded 50 consecutive days with drops across states, pointing to a lower national average of $4.16 per gallon.
You no longer have to search “cheap gas prices near me” to get below $5 per gallon. In many states, you simply have to look up the road.
This sudden drop has left many wondering: why?
Lower gas prices are the product of several contributing factors. Many experts have attributed the cause to many Americans refusing to buy gas, with many opting out of purchases during high-travel weekends due to social media influence and group “challenges” from high-profile accounts–making a heavy impact as the U.S. looms near recession.
Others attribute the drop to an emergency oil release that occurred recently, courtesy of the Biden administration. President Biden was able to access several units of oil barrels housed in the Strategic Petroleum Reserve, enabling prices to drop and offering momentary relief for the struggling lower and middle classes.
What caused the gas prices to hike?
In the first half of 2022, many noticed steep hikes on their local gas prices–with some states and cities reaching highs of $8-$9 per gallon.
While consumers know the result of higher gas prices, many were left questioning why the multiple dollar hike occurred over the course of just a few months.
While there are many other contributing factors, many economists point to the rising price of crude oil at the time that the hikes began–as well as the scarcity of oil as a commodity over the course of the pandemic. The global instability surrounding the Ukrainian-Russian conflict didn’t help either, as import/export relationships became strained due to the international conflict(s).
Despite low gas prices being seen across the country, many consumers still remain wary of purchases and debts–many of which have chosen to work overtime to find new ways to combat rising inflation and risks of recession to come in the third quarter of 2022.
