By Willa Rubin of NPR. After excerpts I posted a timeline chart of how gas prices have changed since 1918 adjusted for inflation. They are not especially high right now by historical standards.
"The price crossed below the $4 threshold on Tuesday, and is currently down to a national average of $3.94 for a gallon of regular. Prices have dipped about 40 cents over the past month"
gasoline prices are dropping for a more banal reason: "For now, it's the seasonal shift, not politics, driving the relief at the pump."
"Gas prices often ease in the fall.
One reason: It's no longer summer, which is the peak season for gas. (Fewer people drive in colder weather, AAA points out.) With less demand, there's a touch more gas on the market.
Refineries also finish their annual maintenance by late fall. So that adds a bit more gas to go around.
And the blend of gasoline that's on the market gets cheaper.
Refineries make two types of gasoline every year: summer and winter blends. The summer blend produces less smog, because it evaporates less quickly in the heat; the winter blend helps engines start up in freezing weather, and uses a bit more butane, which helps lower its cost.
(Normally, the switch happens around September 15. This year, the Environmental Protection Agency and the Department of Energy said the switch would happen on September 1, citing gasoline prices that have been driven up by the war in Iran.)"
The main driver is the falling price of Brent crude oil, which is now down to about $90 a barrel, and which is what refineries need to make gasoline, diesel and jet fuel.
That price is falling because there's a bit more oil coming out of the Middle East via pipelines, and because market traders have rejoiced at the intensifying diplomatic efforts between the U.S. and Iran."
Related posts:
Factors Influencing The Price Of Gas (2011)
Price-gouging laws can backfire (2017)
People say the president can control gas prices if the president belongs to the other party (2017)
Why are refiners' profits so high and can anything bring down gas prices? (2022)
Gas Station Owners, Blamed When Prices Rose, Face Risks as Prices Fall (2022)
California Has a Gas-Price Mystery: Too High, but Why? (2023)
The graph below is from a great blog post by Tim McMahon of InflationData.com. See Inflation Adjusted Gasoline Prices. He gives a history of gas prices with lots of tables.
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