The price of gas in the United States fell below $4 a gallon on Thursday for the first time since March, a drop that has brought relief to Americans struggling with the high cost of everything from groceries to rent.
The national average cost of a gallon of regular gasoline has gone up. That is higher than it was a year ago, but still below the peak it reached in June of last year. The drop in energy costs is good news for policymakers who have struggled to contain the price increases and for the president who has pledged to lower gas costs.
There is a wide range of prices, from nearly $5 a gallon in Oregon and Nevada to about $3.50 in Texas and Oklahoma. The drop is a result of a number of factors, including the fact that high costs have kept some drivers off the roads, and the fact that a few states have suspended taxes on gasoline.
Regardless of the causes, the lower prices are a welcome change for drivers who had to pay an extra $10 to $15 for a tank of gas in order to get back to normal after the coronaviruses epidemic.
In Los Angeles, where gas prices are close to $5.40 a gallon, a student and part-time waitress says people expect a recession because of rising diseases and inflation. It would be a huge relief if I didn't have to worry about the gas price.
Ms. Contreras has been filling up her 2008 Mazda 3 only halfway as a result of the higher prices, which has been costing her $25 to $30 each visit to the pump, and she had found opportunities to car pool with friends. Ms. Contreras drives 15 miles to and from work each week and up to 50 miles a week depending on her plans.
Beth Ann Bovino is the U.S. chief economist at S&P Global. It is a positive sign for those that are struggling
Cash not spent on gasoline that can go elsewhere extends to businesses as the price of diesel fuel also falls. Diesel has fallen from a June record though at a slower pace than gasoline.
The drop in the price of gas is good news for the economy, as businesses face less pressure to pass on energy costs to their customers, which would add to the country's inflation problem.
The government reported this week that consumer price inflation slowed in July due to the drop in gasoline prices. The Federal Reserve may be able to ease up on its campaign to raise interest rates if inflation continues to fall.
It would be a victory for Mr. Biden, who has been trumpeting the drop in gasoline prices, even as he says he expects to do more to bring costs down. Mr. Biden has criticized oil companies for their record profits from high oil and gas prices and this year he released some of the nation's stock of oil in an effort to keep prices from jumping too fast.
He said in late July that he was going to do what he could to bring down the price of gas.
Consumers and economists are wondering if this is a temporary reversal of the fall in prices.
"I'm not ready for it to go higher again and then I'm over here struggling to fill up my tank."
Ms. Beliard regrets buying a Jeep Wrangler because it is not as fuel efficient as the Toyota Camry she used to drive. She sometimes needs to go to New York City to attend events on platforms she promotes brands on, as well as drive to locations for her accounts on TikTok and IG.
Connecticut is one of the states that has stopped taxing gasoline. Ms. Beliard used to spend up to $100 a week on fuel for her Jeep. She is tired of the high bill.
How long is this going to last?
It is hard to answer that question. More than half of the price of gasoline at the pump is determined by global oil prices, which are volatile and subject to a variety of forces.
Oil prices have fallen to their lowest point since the war in Ukraine began, reflecting the growing concern that a global recession will hurt demand for crude. The course of the war could further hamper global oil supplies, energy investors' views on the economy could change, and hurricanes could damage Gulf Coast refineries and choke off supplies.
The steady drop is good news for Americans who are worried about their finances as the economy slows.
Ms Bovino said that if gasoline prices stay at or near the levels they have reached, that would mean more cushion for households.
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