Gas prices set to tumble 10% ahead of the Fourth of July
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Gasoline prices tend to rise during the peak summer driving season, but Americans may be in luck this year.
Thanks to easing domestic demand and supply conditions, gas prices likely peaked in mid-April at a high of $3.67 per gallon – and are expected to continue falling in coming weeks, according to a new analysis published by RSM chief economist Joe Brusuelas.
«Given a look at wholesale gasoline prices, there is room for domestic gasoline prices to decline another 10% from the current $3.44 per gallon,» he wrote. «This will surely bolster U.S. household balance sheets heading into the summer spending season.»
The average cost of a gallon of regular gas was $3.44 on Wednesday, according to AAA, down about 4% from one month ago. Prices are expected to fall further as a result of lackluster demand as consumers pull back on spending in the face of ongoing inflation and burgeoning supply.
RENT PRICES ARE STAGNATING, SUGGESTING HIGH INFLATION MAY STICK AROUND
An Amoco gas station in Washington, D.C., on Nov. 28, 2023. (Photographer: Al Drago/Bloomberg via Getty Images / Getty Images)
«Gasoline demand has trailed 2023 for most of this year, and analysts believe economic uncertainty may suppress demand this summer,» said AAA spokesperson Andrew Gross. «So, is the typical robust summer driving season a thing of the past? Or is gas demand just taking longer to pick up steam? We may not know until autumn.»
Falling gas prices could provide a welcome reprieve to Americans who have been crushed by unrelenting price increases for more than three years.
While inflation has fallen considerably from
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