"Gas prices are falling because oil prices also are. Oil prices account for about two-thirds of the price of gas. Benchmark West Texas Intermediate crude is at $62 a barrel. It was at $80 last January, and in mid-2022, it rose above $100. The average price of a gallon of regular nationwide was $5 then. In Mississippi, the average price of a gallon of regular is now $2.70. The national figure is $3.19."
"Gas prices lag oil prices because of refineries and transportation. Some forecasts put oil below $50 a barrel because of oversupply, which will grow soon largely because of an increase in OPEC+ production. The price of gas will decrease. Mississippi could be considered an aberration, but it is not. GasBuddy reports that gas costs below $2.80 in Arkansas, Louisiana, Oklahoma, and Tennessee. Even in a big northern state like Ohio, it is $2.90."
"In August, the Consumer Price Index (CPI) rose 2.9% year over year. That is about what was expected. However, the price of gasoline fell 6.6%, based on the same timetable. The CPI can be misleading. Car maintenance prices rose 8.5%. Based on the CPI components, inflation is all over the place. Many CPI components may continue to see price increases in the coming months. Yet, the total monthly CPI increases won't be because of gas prices."
The Consumer Price Index rose 2.9% year over year in August, roughly matching expectations while gasoline prices fell 6.6% over the same period. Car maintenance costs rose 8.5%, illustrating divergent CPI components. Oil heavily influences gasoline, with West Texas Intermediate at $62 a barrel, down from $80 in January and above $100 in mid-2022. National average gas is $3.19, with state variation such as Mississippi at $2.70. Gas prices lag oil due to refining and transport. Rising OPEC+ output and oversupply could push oil below $50, lowering gas prices in many regions.
Read at 24/7 Wall St.
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