Drivers are getting some relief at the pump, with the average price of a gallon of gas falling to its lowest level in more than four years, according to new data from GasBuddy, an app that helps drivers find deals on fuel.
Gas now costs $2.95 per gallon on average, down 8.5 cents over the last week and 5.4 cents lower than a year ago, the data shows. That marks the lowest price at the pump since May 2021, the company said.
AAA says the average price for a gallon of gasoline stands slightly higher, at about $3 as of Dec. 1, which it says represents savings of about 7 cents from last week.
GasBuddy said the decline is due to strong refinery output and lower crude oil prices, as well as to softer seasonal fuel demand.
Domestic supplies of crude oil have been strong, with the U.S. producing an all-time high of nearly 14 million barrels a day as of September, according to the U.S. Energy Information Administration.
The Organization of the Petroleum Exporting Countries has increased oil production this year, another factor that has driven down fuel prices, according to Patrick De Haan, head of petroleum analysis at GasBuddy. The decline in gas prices shows the U.S. economy has stabilized after the COVID-19 pandemic and Russia’s 2022 invasion of Ukraine, he added.
