Slight Drop in US Gasoline Prices... Reasons Why It Is a "Temporary Phenomenon" and Will Rise Soon

Average Gasoline Price Exceeds $5 in 17 States... California Leads with $6.40 Average

Gasoline price board installed at a gas station in New York City, USA. The average gasoline price in the United States soared to a record high but has recently entered a temporary downward trend.
[Image source=Yonhap News]

[Asia Economy Reporter Kang Wooseok] The average gasoline price at gas stations nationwide in the United States has slightly dropped below $5 per gallon. However, experts view this as a temporary phenomenon and predict that prices will soon reach $6 per gallon.

According to a CNN report citing data from the American Automobile Association (AAA) on the 19th (local time), the national average gasoline price in the U.S. recorded $4.98 per gallon, down 1 cent from the previous day.

Recently, the average gasoline price had surpassed $5, setting an all-time high. However, since reaching a peak of $5.02 per gallon on the 14th of this month, it has been declining by 1 cent daily.

CNN pointed out that this downward trend is only temporary, and prices are expected to rise as demand for fuel increases during the upcoming summer vacation and holiday season.

Tom Kloza, Global Energy Analyst at U.S. oil price information company OPIS, stated, "Considering the current market fundamentals, the average gasoline price this summer will approach $6."

He added, "This could happen from the 20th of this month until Labor Day (the first Monday of September every year). No matter what happens, even if gas prices are high, people will still go on vacation."

According to OPIS data, 17 states including Washington DC have average gasoline prices above $5, with California being the most expensive at an average of $6.40.

Experts said the recent rise in oil prices is a significant burden on consumers. Kloza analyzed, "A typical American household purchases about 90 gallons of gasoline per month. Therefore, with the average price rising $1.91 per gallon compared to last year, this increase in oil prices results in an additional monthly cost of over $172 (approximately 220,000 KRW) for a typical American household."

This content was produced with the assistance of AI translation services.