After weeks of a seemingly unending trend upward, the price of oil is beginning to move downward. This, consumers hope, will soon give us a break when filling our gas tanks at the pump. Some areas are already seeing the price of gas trend downwards towards cheaper territories. And, experts note, if this trend continues, businesses should be able to regain any losses they felt as the price of oil continued to rise at the start of the year. And, consumers should continue to see the benefits of this going forward.
What We Know
- Oil prices are begining to fall, dipping below $100.
- This will soon translate into relief for consumers as gas prices begin to decrease.
- Consumers saw a concerning upward trend in gas prices as 2022 began, leading to record highs this month.
- If these lower prices continue, busninesses could recoup losses, passing the benefits onto customers.
Gas Prices Are Beginning To Trend Downward As the Price of Oil Dips Below $100
Consumers have been facing record-breaking prices at the pump in recent weeks. However, it appears that relief is in sight as the price of oil is beginning to decline. Leading to a much-anticipated dip in gas prices.
It was reported earlier this week that oil prices are beginning to decline, falling to $96.44 per barrel. This has led to a decrease in gas prices in some of the most expensive areas in the nation. AAA notes that as of Tuesday, the national average of gasoline dropped from $4.33 a gallon down to $4.316 per gallon. No doubt a welcome relief for consumers, and business owners alike.
“If these levels hold, gas stations will be able to quickly recoup any losses from the intense rise in oil prices over the last few weeks,” notes GasBuddy spokesperson Nicole Petersen during a discussion with FOX Business.
“This means they’ll be able to lower prices at the pump relatively quickly as well,” Petersen adds.
Consumers Are Ready For Some Relief At the Pump
Gas has been steadily on the rise as we entered 2022, with the national averages soaring between January and now. Furthermore, Russia’s invasion of Ukraine last month led to a further surge in prices. Leading to rates United States consumers had not seen in over ten years.
However, with the decrease in oil costs, the trend is quickly adjusting in favor of consumers who are ready for some monetary relief while filling up at the gas pumps. In fact, some experts note that if the price of oil stays within the double digits, customers can expect gas prices to dip below $4 in some areas.
Experts Predict Gas Prices Will Fall At Different Rates – Some States Seeing More Relief Than Others
Some states that have been maintaining gas prices below the $4.33 per gallon national average could see their gas prices decline faster and lower than other areas. Conversely, the states that have been seeing gas prices soaring around – and above – the national average is likely to see major changes at the pump. As Petersen notes, many of these states, such as California, are still seeing charges “near the $6 mark on average.”