Wednesday 21 September 2022 06:08 PM Pain at the pump is back! Average gas prices nationwide RISE by 0.7 cents to ... trends now
America's gas prices rose for the first time in nearly 100 days Wednesday, putting an end to a historic streak of falling prices driven by stronger supply and weaker demand for fuel.
The 99-day decline - spurred by ongoing supply chain woes and the war between oil-rich Russia and Ukraine - saw prices rise to as high as $10 in some states, and a record national average of $5.02 in June.
Pump prices have fallen ever since, plummeting for 99 consecutive days to $3.67 on Tuesday - a more than 26 percent decrease.
On Wednesday, however, that reduction reversed, rising by a faction of a cent to $3.68 per gallon, sparking fears that ongoing inflation is here to stay, as the Fed prepare to hike rates by another .75 - the fourth such increase this year.
The hike, while marginal, puts an end the second-longest such streak in American history, going back to 2005.
The increase could also mitigate the Fed's efforts - and anticipated pullback in inflation - over the coming months, experts say particularly when combined with rising heating oil and energy forecast for the upcoming winter months.
In the meantime, though, commuters have welcomed the brief refrain from raising prices - despite an argument that the benefit is being offset by the rapidly rising cost of other essentials, such as housing and groceries.
Additionally, prices are still about 50 cents more than they were a year ago, after going into overdrive during Joe Biden's presidency. Prior to that, under then-President Trump, prices had reached a historic low of $1.77 - 200 percent less than the current national average.
America's gas prices rose for the first time to $3.69 in nearly 100 days Wednesday, putting an end to a historic streak of falling prices driven by stronger supply and weaker demand for fuel.
The 99-day decline - spurred by ongoing supply chain woes and the war between oil-rich Russia and Ukraine - saw prices rise to as high as $10 in some states, and a record national average of $5.02 in June
'All streaks have to end at some point,' AAA spokesperson Andrew Gross said in a blog post of Wednesday's slight hike.
The rep went on to reiterate that the national average for a gallon of gas has fallen $1.34 since its peak in mid-June, before citing several factors that could account for the increase.
'There are big factors tugging on global oil prices - war, COVID, economic recession, and hurricane season,' Gross aid.
'All this uncertainty could push oil prices higher, likely resulting in slightly higher pump prices.'
With that said, the plunge in prices can be traced back to a series of factors, including a more robust oil supply due to a recent release of millions of barrels of emergency oil by the White House, as well as weaker demand likely due to high prices deterring drivers from hitting the road.
The Biden administration has since touted the decline as a personal victory, after the president saw is approval rating drop to a record low of 36 percent amid Americans' widespread frustration over the prolonged pain at the pump.
Since then, however, gasoline prices have come off dramatically - and Biden’s approval rating has subsequently seen a significant surge, to 42 percent.
A price board is seen at a gas station in New York on September 13. The state's average, along with several others, has since fallen to below $4
Moreover, many contend that a further factor driving gas prices lower are growing concerns of a global recession - which could lead to a decreased demand for gas, if Americans cut back on spending and start losing their jobs.
Also likely contributing to the nearly 100-day decrease is the strong US dollar, due to the fact that crude oil - the main ingredient in automobile gasoline - is priced in dollars, meaning each dollar can buy more oil than it would if the value was stagnant.
The dollar index, which compares the value of the US currency to its major foreign counterparts, is up a whopping 15 percent this year - despite inflation reaching a 40-year high over the summer.
What's more, the strengthening dollar also means that oil prices are rising faster for countries that don't use the American greenback, lessening global demand.
Meanwhile, Russia's oil flows have held up better than expected despite sanctions and the war in Ukraine, further contributing to the decrease.
However, as tensions mount between the countries following Russian President
