After the Rise in Gas Prices, the United States is Now Seeing Them Fall
By: Jacob Yang
Now on the decline for a month, many people, especially drivers, see the cost for gas has dropped. However, they are still unstable, and a rise or decline could happen soon.
June’s gasoline prices were seen 9.1% higher than at the beginning of the year, contributing to the increase in inflation. This increase was the highest annual jump in 40 years. However, the in past 28 days, Americans have saved $140 million on gas as the cost cools down.
However, Tom Kloza, head of Oil Price Information Service, stated that if a hurricane destroys an oil refinery, the oil market may increase again, since the country’s oil all depend on one another to function. The war in Ukraine has made many countries stop exporting oil to the country, a cause to the higher costs. The average price of US’s oil was $4.63 per gallon on Wednesday, which was two cents less than the day before, according to the AAA Auto Club. In the entire month, prices have fallen 38 cents overall, and 15 cents just last week.
In major economically important states, such as Texas, California, and Illinois, prices have been at an even quicker drop, with 16 cents or more this past week. President Biden stated over Twitter that “The price of gas has decreased for 30 days straight, the price at the pump has dropped by 40 cents since mid-June … Gas should continue to come down in the days and weeks ahead … That’s breathing room for American families.”
Lower-income families were hit exceptionally hard by the increase and decrease in oil prices. They tend to drive further to get to work every day, and their cars tend to be older than middle and higher income classes, leading them to intake more fuel. As drivers notice the difference between the costs in this month and the last, they like what they see.
Melanie Wilson-Lawson, a health science professor, said as she refueled her car that “there’s always the fear that prices will rise but never fall, but I see a significant difference now. It’s huge.” The increase has made her dine out less due to financial insecurities, but now she can return to her normal schedule.
Fuel also alters the cost of goods being shipped, particularly food. Farmers, airports, and ships all have seen an increase in jet fuel and diesel prices. While slower than oil, prices have also slowly fallen, lowering the average price down to $5.61, 16 cents lower than the previous month. The reason it is not as dropping as rapidly as fuel is because of Russia’s February invasion on Ukraine. Imports and exports to and from Europe have become more expensive to make up for the lost trade. It has affected the world, including the US, globally.
Despite the recent downward trajectory, gas and fuel prices have not decreased for everyone. Doug Johnson, a manager for a pipeline company, stated that “Honestly, I haven’t noticed … You’re talking cents, and I’m talking dollars. We made a conscious decision not to take a vacation this summer.” Gas prices were still $1.50 higher they were a year ago.