Gasoline prices in the US have fallen for 57 consecutive days since hitting a high of more than $5 a gallon in June.
The national average price for gasoline on Wednesday was $4.01, according to AAA. That’s higher than he was a year ago, but still well below his mid-June record of nearly $5.02 (before adjusting for inflation). The drop is also good news for policymakers who have made it a priority to curb rising fuel prices, as energy costs are reflected in broad inflation indicators.
This decline reflects many factors. Demand is sluggish as some drivers are staying off the road due to high costs. The drop in global oil prices in recent months. Several states have also suspended gas taxes. The drop has been welcomed by the Biden administration, which for months has organized a campaign to lower gas prices and criticize energy companies for profiting at the expense of American consumers.
Lower gas prices are also a positive sign for the economy as businesses face less pressure to pass energy costs on to their customers.
