Washington DC, 12 August 2022 (TDI): According to the latest energy statistics, the White House reported a gas price reduction per gallon below $4.
For the first time in over five months, the average price of a gallon of gas is now below $4.
And, President Biden will continue calling on domestic and international oil producers to increase global supply and lower costs for American families even more.
— The White House (@WhiteHouse) August 11, 2022
During the phase of economic inflation and recession, as the petroleum industries have shown a record profit, the average price of a gallon of gas is now below $4.
For the first time since March, the price of gas statewide has dropped down, nearly two months after it reached a record of $5.02. Decreased gas prices are a result of reduced oil prices.
Even as the benchmark Brent gasoline price increased by 68 cents to $96.99 per gallon on Wednesday, it is still below the $100 threshold. Futures for US West Texas Intermediate crude increased by 83 cents to $91.33.
Price Reduction Causes
One apparent cause is Russia’s continuing invasion of Ukraine. The White House claims that, at its highest, the conflict increased petrol costs by more than $1.70 a gallon.
Even if the US doesn’t import a lot of Russian crudes, there is a worldwide oil market, so any movement there has an impact on pricing everywhere.
By June 13, the price of gasoline had reached a record-setting of $5.02 a gallon, which is still less than the 2008 top of $4.14 when accounting for inflation.
Troy Vincent, a senior market analyst at the energy monitoring firm DTN stated; “We’ve had a supply-and-demand imbalance for a while and it will remain, regardless of whether this conflict goes away.”
The current drop in gas prices is the fastest decline in over a decade – lowering everyday costs for American families. pic.twitter.com/swCMrXn3rk
— The White House (@WhiteHouse) August 11, 2022
Americans who drive infrequently are among the causes driving the cost reduction. Per the US Energy Information Administration, gas use is decreased about 10% since last year.
Likewise, President Joe Biden has considered lowering gas costs a top objective in terms of his foreign policy. To address the international supply problem, Biden asked Saudi Arabia, a significant oil exporter, to raise productivity during a trip there the previous month.
