After exceeding $5 a gallon for the first time in history, U.S. gasoline prices are finally falling, giving some relief to consumers in the world's largest user of the fuel.
The average retail price for gasoline nationwide is still $4.631, down from a record of $5.014 a month ago but still $1.485 higher than a year ago, according to the American Automobile Association.
Prices are on a trajectory to keep falling at least the next few weeks. Global fuel demand has been declining because of the high prices and the strong U.S. dollar making oil more expensive elsewhere. Supply remains tight, so after that point, it's uncertain whether prices will continue to fall.
U.S. gasoline prices have followed a drop in the futures market for both crude oil and gasoline. Those markets are down because investors are worried interest-rate hikes will slow the economy as central banks get aggressive in combating inflation.
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U.S. demand for gasoline, jet fuel and diesel is down more than 10% compared to 2019, before the pandemic began, according to the Energy Information Administration. Gasoline stations have responded by lowering prices.
