
<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Gas prices in the U.S. reached a more than three-year low Monday, dipping below the $3.00 mark as Americans prepare to travel for the holidays.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>The national average price for a gallon of gas reached $2.97 this week, according to data from&nbsp;<a href="https://www.gasbuddy.com/charts" rel="noreferrer noopener" target="_blank">GasBuddy</a>, marking its lowest point since May 2021.</p>



<p>Gas prices have fallen for eight consecutive weeks with the most common price encountered by U.S. motorists being $2.79 per gallon.</p>



<p>The&nbsp;<a href="https://gasprices.aaa.com/an-early-holiday-gift-gas-prices-plunge-to-three-year-low/" rel="noreferrer noopener" target="_blank">American Automobile Association</a>&nbsp;has the national average price for a gallon of gas at $3.01, also calling the price point a three-year low and noting 32 states already have averages below or well below $3.</p>



<p>The national average price of diesel has declined 2.3 cents since last week and is now $3.49 per gallon, GasBuddy reported.</p>



<p>The drop in gas prices “couldn’t come at a better time for motorists with the holidays upon us,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a&nbsp;<a href="https://www.gasbuddy.com/go/national-average-drops-below-3-first-time-in-1308-days" rel="noreferrer noopener" target="_blank">statement</a>, adding the national average could potentially fall another 10 to 15 cents by Christmas.</p>



<h2 class="wp-block-heading" id="h-where-are-gas-prices-cheapest">Where Are Gas Prices Cheapest?</h2>



<p>States with the lowest average prices include Oklahoma ($2.52), Mississippi ($2.62), Texas ($2.63), Arkansas ($2.63) and Kansas ($2.67), according to AAA.</p>



<h2 class="wp-block-heading" id="h-where-are-gas-prices-the-most-expensive">Where Are Gas Prices The Most Expensive?</h2>



<p>States with the highest average prices include Hawaii ($4.56), California ($4.39), Washington ($3.99), Nevada ($3.66) and Oregon ($3.53), according to AAA.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>The drop in gas prices follows poor gasoline demand during the week of Thanksgiving, according to GasBuddy, which noted gasoline inventories have increased. The Organization of the Petroleum Exporting Countries Plus recently&nbsp;<a href="https://www.reuters.com/business/energy/oil-prices-dip-extended-opec-supply-cuts-highlight-weak-demand-2024-12-06/" rel="noreferrer noopener" target="_blank">announced</a>&nbsp;it will push back the start of oil output increases until April following a significant drop in global demand. Americans are benefitting from the dip in gas prices and may continue to enjoy the lowered price points in the leadup to the holidays. Around 65% of Americans are expected to take a road trip at some point between Thanksgiving and mid-January, according to a holiday travel survey by&nbsp;<a href="https://www2.deloitte.com/content/dam/insights/articles/us187627_cic-holiday-travel/2024-Deloitte-Holiday-Travel-Study.pdf" rel="noreferrer noopener" target="_blank">Deloitte</a>.</p>



<h2 class="wp-block-heading" id="h-further-reading">Further Reading</h2>



<p><a href="https://www.gasbuddy.com/go/national-average-drops-below-3-first-time-in-1308-days" rel="noreferrer noopener" target="_blank">National Average Drops Below $3, First Time in 1,308 Days</a>&nbsp;(GasBuddy)</p>



<p><a href="https://gasprices.aaa.com/an-early-holiday-gift-gas-prices-plunge-to-three-year-low/" rel="noreferrer noopener" target="_blank">An Early Holiday Gift? Gas Prices Plunge to Three-Year Low</a>&nbsp;(AAA)</p>


RC172B548A50

Gasoline Prices Drop Below $3.00— Lowest Point In Three Years


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>As rapid inflation fuels growing recession fears, new data showed consumer prices rose 9.1% in the 12 months ending in June, hitting a worse-than-expected 40-year high after an unprecedented surge in gas prices.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Overall prices rose 1.3% from May—surpassing the 1.1% economists were expecting and much higher than the previous month’s increase of 1%, according to&nbsp;<a href="https://www.bls.gov/news.release/pdf/cpi.pdf" target="_blank" rel="noreferrer noopener">data</a>&nbsp;released by the Labor Department on Wednesday.</p>



<p>The unexpected jump marks the largest 12-month increase since the period ending November 1981, according to the release, and comes after prices in May unexpectedly returned to a 40-year high.</p>



<p>The worse-than-expected increase was the result of increases across categories, with gasoline, shelter and food being the largest contributors, the government said.</p>



<p>The energy index rose 7.5% over the month and contributed nearly half of the overall increase, driven higher by the gasoline index, which rose 11.2%.</p>



<p>Core inflation, which excludes volatile food and energy prices, rose 0.7% against an expectation of 0.5%; shelter prices rose at the fastest pace in 31 years while rent prices climbed at the largest rate in more than 35 years.</p>



<p>Stocks <a href="https://www.forbes.com/sites/sergeiklebnikov/2022/07/13/dow-falls-300-points-after-ugly-inflation-report-adds-to-recession-fears/">plunged</a> immediately after the report, with the Dow Jones Industrial Average paring pre-market gains and trading down 308 points by 8:45 a.m. ET.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Rising energy prices have helped push inflation readings up to the highest level in decades during the pandemic, and stocks have struggled in recent months as Federal Reserve officials work to combat the surge by unwinding the central bank’s pandemic-era stimulus measures. After rising 27% in 2021, the benchmark S&amp;P 500 has tumbled 20% this year. Meanwhile, oil prices surged back toward yearly highs of more than $120 per barrel in June amid supply concerns over the summer travel season—adding to those spurred by&nbsp;<a href="https://www.forbes.com/sites/forbesstaffreports/2022/03/09/live-ukraine-russia/">sanctions</a>&nbsp;against Russia, one of the world’s top oil-producing countries. Prices have since fallen back below $100 per barrel this month, but experts&nbsp;<a href="https://finance.yahoo.com/news/oil-prices-should-find-a-lower-home-as-market-normalizes-says-analyst-194242256.html" target="_blank" rel="noreferrer noopener">aren’t</a>&nbsp;so sure how long the reprieve will last.&nbsp;</p>



<h2 class="wp-block-heading">WHAT TO WATCH FOR</h2>



<p>In a note to clients Sunday night, Goldman economists said they expect consumer prices to rise more quickly this summer as&nbsp;<a href="https://morningconsult.com/2022/05/25/public-transport-spending-inflation/" target="_blank" rel="noreferrer noopener">transportation</a>&nbsp;and&nbsp;<a href="https://www.barrons.com/articles/consumers-healthcare-costs-51655319960" target="_blank" rel="noreferrer noopener">health insurance</a>&nbsp;costs continue to surge, pushing core inflation from 5.9% in June to 6.3% in September. Some experts believe the price surge could last for years. “Consumers may have to live in a world where inflation consistently runs hotter than the previous decade,” LPL Financial chief economist Jeffrey Roach said in a note this month, citing concerns from central bankers like the European Union’s Christine Lagarde, who’s&nbsp;<a href="https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220628~754ac25107.en.html" target="_blank" rel="noreferrer noopener">warned</a>there are “growing signs”—including the ongoing war in Ukraine—that suggest “supply shocks hitting the economy could linger” beyond 2024.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="http://www.forbes.com/sites/sergeiklebnikov/2022/07/13/dow-falls-300-points-after-ugly-inflation-report-adds-to-recession-fears/">Dow Falls 300 Points After ‘Ugly’ Inflation Report Adds To Recession Fears</a><em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2022/07/04/inflation-may-get-much-worse-this-summer-and-could-linger-many-years-experts-warn/">Inflation May Get Much Worse This Summer—And Could Linger ‘Many Years’—Experts Warn</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2022/06/27/unemployment-will-rise-and-extreme-price-pressures-continue-as-fed-hikes-risk-recession-sp-warns/">Unemployment Will Rise And ‘Extreme’ Price Pressures Continue As Fed Hikes Risk Recession, S&amp;P Warns</a> <em>(Forbes)</em></p>



<p><strong><em>By Jonathan Ponciano, Forbes Staff</em></strong></p>


Tag: Petrol Prices

FORBES AFRICA SOCIAL MEDIA

Gasoline Prices Drop Below $3.00— Lowest Point In Three Years

Inflation Spiked 9.1% In June—Hitting New 40-Year High As Price Surge Fuels Recession Fears