Why gas prices are falling
Even though demand for gas is up slightly and supply has also tightened, AAA says, drivers can largely thank lower oil prices for today’s cheaper fuel.
Crude prices are down about 30% from March when they spiked above $120 amid the war in Ukraine and a ban on Russian imports fueled fears of supply constraints.
Oil has been falling as markets worry about a slowdown in the economy reducing demand.
On Thursday, the price of West Texas Intermediate fell to $86.61 per barrel.
“Crude prices have declined this week amid market concerns that crude demand will fall if economic growth slows or stalls due to a recession,” AAA reports. “Crude prices will likely follow suit if demand declines due to reduced economic activity.”
Kiss Your Credit Card Debt Goodbye
Having a single loan to pay off makes it easier to manage your payments, and you can often get a better interest rate than what you might be paying on credit cards and car loans.
Fiona is an online marketplace offering personalized loan options based on your unique financial situation.
When you consolidate your debt with a personal loan, you can roll your payments into one monthly installment. Find a lower interest rate and pay down your debt faster today.
Get Started
What could cause prices to surge again
Gas prices have never been so volatile, jumping from the $3 range to above $5 and now back under $4. But that doesn’t mean they stay at this level.
“While the recent drop in gas prices has been most welcomed, the issues that led to skyrocketing prices aren’t completely put to bed, and still could lead prices to eventually climb back up, should something unexpected develop,” De Haan said earlier this month.
Hurricanes, too, are a wild card when it comes to the fuel market. Should a storm knock out a refinery, supply would fall and prices could spike.
“Unexpected reductions in refinery operations because of unplanned outages — particularly those related to hurricanes on the Gulf Coast — as well as potential increases in driving activity in response to lower retail gasoline prices both present upside risks to gasoline prices,” according to an August report from the U.S. Energy Information Administration (EIA).
Where gas prices are heading
If you’re planning one last road trip before summer’s unofficial end, you definitely won’t face the kind of sticker shock you did earlier this year. But if you can wait a few months longer, your gas bill could be even lower.
Gas prices are expected to average $4.29 per gallon in the third quarter of 2022 and then fall to an average of $3.78 per gallon in the last three months of the year, according to the EIA’s latest market update.
De Haan also expects prices to continue to moderate — within reason.
“Prices by the end of the year should be under $4 a gallon, but a major hurricane that disrupts the flow of energy could really impact where we go beyond that,” he says.
Stop overpaying for home insurance
Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.
SmartFinancial can help you do just that. SmartFinancial’s online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.
Explore better rates
What to read next
- Mitt Romney says a billionaire tax will trigger demand for these two physical assets — get in now before the super-rich swarm
- You could be the landlord of Walmart, Whole Foods and Kroger (and collect fat grocery store-anchored income on a quarterly basis)
- What do Ashton Kutcher and a Nobel Prize-winning economist have in common? An investing app that turns spare change into a diversified portfolio
Sponsored
Follow These Steps if you Want to Retire Early
Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.
Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.
