Jamie Spencer
Current Gasoline Price Trends
As of Friday, the national average price of gasoline was $3.21 per gallon, reflecting a $0.13 increase from a month ago but a nearly $0.42 decrease compared to the same period last year, according to AAA data. Over the past week, prices at the pump decreased by $0.05 per gallon, partially reversing a recent surge due to refinery maintenance and the switch to more expensive summer blends of gasoline.
Predicted Decline in Gasoline Prices
Experts forecast that gasoline prices will continue to decline in the coming weeks, primarily driven by the sharp drop in oil prices. “I expect the national retail price of gasoline to fall by about $0.15 per gallon over the next two weeks, and we could see additional declines if crude oil prices remain low,” said Andy Lipow, president of Lipow Oil Associates.
Impact of Oil Price Drops
On Friday, oil prices were on track to close with losses for the second consecutive week, with West Texas Intermediate (CL=F) futures hovering near $60 per barrel and Brent (BZ=F) trading at around $63 per barrel. Crude futures have dropped more than $10 per barrel since President Trump announced a comprehensive tariff plan on April 2. The Organization of Petroleum Exporting Countries (OPEC) and its allies also decided to increase output in May, further influencing oil prices.
Short-Term Tariff Effects and Trade War Concerns
Trump’s 90-day pause on tariffs for some 75 countries provided a brief bounce to oil prices. However, as levies on Chinese-made goods were increased to 145%, traders expressed concerns that the ongoing trade war with China, the world’s largest crude importer, could dampen global demand.
Potential for Gasoline Prices Below $3
Some experts predict that gasoline prices may eventually fall below $3 per gallon unless the economic situation improves. “We’ve never seen the status quo shifted so significantly like this, and oil prices aren’t reacting positively to what’s happening,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The shift could lead to significant price drops in the future.”
Gasoline Price Impact on Inflation
Lower gasoline prices have contributed to a cooling of inflation. According to the latest Consumer Price Index (CPI) report, gasoline prices decreased an annualized 9.8% in March, helping to push the overall energy index down by 3.3% over the same period, which has eased inflationary pressures for consumers.
