- Advertisement -spot_img
Friday, January 27, 2023

Why has petrol prices come down according to experts?

Due to the high rate of inflation, in the middle of this year, Fuel prices hit an all-time high with $5.02 per gallon of gasoline on average. since, There has been a huge reduction in cost.

Currently, and according to statistics from the American Automobile Association (AAA), average cost of a gallon of gasoline in American Federation It is at $3,214.

While this is a considerable decline, Experts on the subject predict that the downward trend will continue at least until Christmas. Therefore it is expected that the average of prices In some states of the country, it falls below three dollars.

“It is very possible National average price of gasoline drops below $3 per gallon by ChristmasWhich would be a great gift for motorists after a busy year at the pump,” Patrick de Haan, head of oil analysis, said Gasbuddy.

by your side, President Joe Biden released a message to celebrate the fall After reaching a historic high in June this year.

“Most Americans can see progress by driving on the road, relieved at the pump in the form of declining gas prices. Prices are lower now than they were a year ago, and half of gas stations sell gasoline for $3.09 or less. Most common price for gas stations nationwide is $2.99, The leader of the White House expressed.

You may also be interested in: Legislators introduce a bill to ban TikTok in the United States

Why did petrol prices fall?

One of the main factors in the fall in price inflation has come downbecause it contributes to The slowdown of all sectors in general, including gasoline. Even then, The price of crude oil is also one of the main drivers of the price of gasoline.

in present, Energy market is facing its worst quarterly decline, around mid year, West Texas Intermediate (WTI) futures hit $120 a barrel; nowadays, A barrel of WTI crude costs around $70.

According to experts on this subject, The decline in crude oil contracts results in a reduction in demand, which in turn affects the cost of gasoline for all consumers. under this line, AAA warns that the situation could change at any time, i.e. increase in demand, Will cause a further hike in fuel prices.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here