Average US gas price drops below $5 per gallon

The average price on Sunday was $4.98 a gallon, down from $4.99 in Saturday’s reading. average Gas cost $5 or more Record prices have crossed that level for the first time in the past seven days. It hit a high of $5.02 a gallon on Tuesday and has since declined by a fraction of a penny each day.

But drivers shouldn’t get too excited. Beyond the fact that the drop from $5.02 per gallon to $4.98 only saves 80 cents when filling 20 gallons, it’s very likely that this is only a temporary return to gas prices.

With many schools nearing the holiday and the summer travel season in full swing, gas demand – and prices – is likely to climb again soon. The average gas price could reach $6 this summer, said Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA given current market fundamentals.

“Anything goes from June 20 to Labor Day,” Kloza said recently of gas demand as people hit the road to the long-awaited getaway. “Come hell or high gas prices, people are going to take vacations.”

And it’s not like $5 per gallon of gas is rare anymore.

According to data from OPIS, about a third of the 130,000 gas stations AAA surveyed are selling regular gas for more than $5. There are 17 states, as well as Washington DC, where the average price is $5 or more. new jersey only slightly behind a . with $4.999 average, The highest priced state lives in California, where gas costs an average of $6.40 per gallon.

Gas prices have fallen much more slowly than they did ahead of Tuesday’s record, confirming the old adage that gas prices go up like a rocket and come down like a feather. For the two months preceding Tuesday’s record, the AAA average price reading rose 58 times in 60 days, adding 94 cents to the national average price. This is a steady climb of about 2 cents in a day, while the price has fallen by less than a penny since Tuesday.

There has been a huge pressure for gas and oil prices multiple consumer budgets, Kloza said the typical American household buys about 90 gallons of gasoline a month, so compared with prices on average of $1.91 per gallon last year, the typical American household is spending an additional $172 per month.
Early signs that higher prices may force consumers trim expenses at other retailers, raising fears that this could be a factor affecting the economy slip into recession,