Following a record high this past June of over $5 a gallon for gasoline as the national average, gas prices are finally beginning to fall. As of July 23, 2022, the national average was down to $4.38. At this time last year, Americans were paying $3.17 on average at the gas pump, according to AAA.
Experts report that the cause of declining fuel prices is due to lower demand from consumers, which means not as many people are driving or traveling this summer as was originally expected. This drop in demand allowed for inventory to build, which led to lower prices.
Another factor involves stocks and crude oil prices.
“If gas demand remains low as stocks increase, alongside a continuing reduction in crude prices, drivers will likely see pump prices decline,” a July 21, 2022 AAA press release states. “Crude prices have declined this week as the market continues to worry that weakening demand, which was expected to remain robust throughout the summer, could continue to push prices lower.”
