American Gas Prices May Drop by 50%

"In July 2022, the average price of a gallon of regular gasoline in America reached $5.01. That was mostly due to refinery costs and Russia's invasion of Ukraine. Yesterday, that price nationwide was $3.20. It has even dropped to less than $2.80 in several states near the huge refineries near the Gulf of Mexico. In Mississippi, the price has fallen below $2.70."

"OPEC+ will increase output next month. The group of eight countries is the world's largest oil producer. The price of a barrel of benchmark West Texas Intermediate crude has dropped below $62. In January, it was $80 a barrel. The U.S. Energy Information Administration (EIA) forecasts the figure could go as low as $50 this year. In March 2022, the price of crude briefly reached $120."

Gasoline prices have declined sharply from $5.01 per gallon in July 2022 to about $3.20 nationwide and under $2.70 in parts of Mississippi and Gulf states. The decline follows lower crude prices, increased OPEC+ planned output, and easing refinery cost pressures. West Texas Intermediate crude dropped below $62 from $80 in January, with the EIA projecting potential declines toward $50. Oil comprises roughly 52% of gasoline costs. Lower fuel prices reduce household spending shares—about 4% on average and higher for lower-income families—partially offsetting broader inflationary pressures and affecting EV ownership cost calculations.

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