Gas prices are projected to decrease in the upcoming weeks if the recent sharp decline in oil prices resulting from the US-China trade tensions persists. As of Friday, the national average price for gasoline was $3.21 per gallon, which is $0.13 higher than a month ago but nearly $0.42 lower compared to a year ago, according to AAA data. In the past week, pump prices dropped by $0.05 per gallon following the fall in oil prices, partially reversing a previous increase caused by refinery maintenance and the transition to costlier summer gasoline blends.
Andy Lipow, the president of Lipow Oil Associates, stated that gasoline prices are anticipated to continue falling in tandem with the recent drop in oil prices. He expects a decrease of about $0.15 per gallon in the national retail price of gasoline over the next two weeks, with the possibility of further declines if low crude oil prices persist.
Oil prices were set to end the week with losses for the second consecutive week, with West Texas Intermediate (CL=F) futures hovering around $60 per barrel and Brent (BZ=F) trading near $63 per barrel. The decline in crude prices has been attributed to President Trump’s tariff announcements in early April and OPEC’s decision to increase output in May.
Experts suggest that gasoline prices could potentially drop below $3 per gallon if economic conditions do not improve. Lower gasoline prices compared to the previous year have contributed to a cooling of inflation, with the Consumer Price Index for March indicating a 9.8% annual decrease in the gasoline index and a 3.3% decline in the overall energy index.
Ines Ferre, a Senior Business Reporter for Yahoo Finance, emphasizes the impact of current events on oil and gasoline prices, highlighting the potential for further fluctuations depending on economic developments.
