Gas Prices Down for Second Straight Week — Will They Continue to Fall?

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The United States celebrates its birthday on Monday, but American drivers are already unwrapping presents in the form of falling gas prices. Sure, it’s sort of like getting a pair of socks since prices are down from all-time highs, but it’s still welcome news for millions of motorists preparing to hit the road over the July 4 weekend.

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Gasoline prices have declined for a second straight week amid a similar dip in global oil prices. The average price for a gallon of gas stood at $4.857 on Thursday, according to AAA. That’s down from $4.940 a week ago and well below the record price of $5.016 set on June 14.

Lower prices at the pump should warm the hearts of the 42 million Americans expected to take a road trip of 50 miles or more this July 4, which falls on Monday. Unfortunately, one reason oil and gas prices are dropping is due to falling demand amid fears of a global recession. AAA noted that the price of oil dropped to around $107 per barrel earlier this week from $110 last week. 

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“Fear is not a good reason to move a market like the one for oil, but it is a powerful motivator,” AAA spokesperson Andrew Gross said in statement. “The cost of oil accounts for nearly $3 for every $4.89 at the gas pump. Consumers should find more relief when fueling up if oil prices drop further.”

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Gas prices could sink even further over the next few days. As previously reported by GOBankingRates, they could dip as low as $4.75 a gallon on July 4, according to a recent prediction from Patrick De Haan, GasBuddy’s head of petroleum analysis.

The wild card is how unforeseen events might impact gas prices over the near term. As CBS News reported, any abrupt changes to supply — such as a slowdown in production caused by severe summer weather — could quickly reverse the downward trend.

“Risk remains that when the peak of hurricane season arrives, we could see a super spike at the pump,” De Haan said in a statement.

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.

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