U.S. gasoline prices have fallen for 57 straight days since hitting a high of more than $5 a gallon in June.
The national average gas price was $4.01 on Wednesday, according to AAA. That’s higher than a year ago, but still well below the all-time high of nearly $5.02 in mid-June (unadjusted for inflation). Energy costs are fueling general measures of inflation, so the decline is also good news for policymakers who have made limiting rising fuel prices a priority.
The decline reflects a number of factors: lower demand because high costs kept some drivers off the roads; a drop in world oil prices in recent months; and a handful of states suspending gasoline taxes. The drop was welcomed by the Biden administration, which has been orchestrating a campaign for months to lower gas prices and criticizes energy companies for profiting at the expense of American consumers.