• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • Week Ahead: Numbers, Numbers and More Numbers
  • The Rearview Mirror: All That the Name Implies
  • Top Tips for Improving EV Range in Cold Weather
  • Mercedes is First Automaker to Offer True Level 3 Hands-Free Driving System in the U.S.
  • Audi Introduces Fourth “Sphere” Concept: Activesphere
  • Jaguar Land Rover Posts First Profitable Quarter in Two Years
  • Musk Confirms Cybertruck Production Tracking for End of 2023
  • Polestar Raises its Game with the 2024 Polestar 2
  • Toyota CEO Akio Toyoda Steps Down, Hands Reins to Lexus Chief Koji Sato
  • Environmental Groups Chide GM for ICE Investments
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Ford F-150 Raptor R 4x4 Super Crew
    • A Week With: 2023 Genesis Electrified G80 AWD
    • A Week With: 2023 Land Rover Defender 110 V-8
    • First Drive: 2023 Honda Pilot TrailSport
    • A Week With: 2023 Jaguar F-Type R Coupe
    • A Week With: 2023 GMC Yukon Denali Ultimate
    • A Week With: 2023 Genesis GV60 Performance
    • A Week With: 2023 Chevrolet Suburban Z71
    • A Week With: 2023 Lexus UX 250h F Sport
    • A Week With: 2023 Mercedes-Benz EQB 300 4Matic
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Gas and oil > National Average for Gas Drops Below $4 a Gallon

        National Average for Gas Drops Below $4 a Gallon

        Trend looks to continue, although Mother Nature could change it.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        Aug. 11, 2022

        The average price of gasoline nationwide slid under $4 per gallon for the first time since early March as the Russian invasion of Ukraine sent the price of crude oil soaring on global markets.

        Pumping gas at gas pump. Closeup of man pumping gasoline fuel in car at gas station
        The average price for a gallon of gas in the U.S. has dropped below $4 a gallon.

        AAA reported since Monday, the national average for a gallon of regular gasoline dropped 6 cents to $3.99. 

        The national average has not been below $4 per gallon since March 5, leading the national average to a new all-time high earlier the summer.

        According to new data from the Energy Information Administration (EIA), gas demand increased from 8.54 million barrels per day to 9.12 million last week. However, the rate is 307,000 barrels lower than last year. 

        Moreover, according to EIA, total domestic gasoline stocks decreased to 220.3 million barrels.  Although gasoline demand has increased and supply has tightened, lower oil prices have helped lower pump prices. 

        More production blunts oil shock

        The Baker Hughes Rig Count, which tracks the number of active drilling rigs operating in the U.S., increased by 56 percent. There are now 764 active rigs working in the U.S., 273 more than were active a year ago, according to Baker Hughes, which is closely tied to the oil industry.

        Gas prices
        One of the factors in the falling price of gas, which was down more than a million barrels a day.

        In addition, the higher prices worldwide have led to a stabilization of output by the so-called frackers, who are now forced to pay attention to the bottom line since many of the wells have been taken over by hedge funds and other investor groups that pay close attention to their returns.

        In addition, output from fracking in North Dakota was reduced last spring by power outages brought on by a blizzard, which shut down production for weeks.

        With the frackers stepping up production and the rig count rising, the net result is a steady increase in the crude oil production in the U.S., according to the EIA.

        The Biden administration also has buffered the price of crude from the shock created by Russian invasion of Ukraine with releases from the U.S. national oil reserves.

        Further declines?

        Industrial jack pump platform pumping crude oil over sunset sun
        While demand for gas is down, oil production is on the rise in the U.S.

        If oil prices continue to decline, drivers will continue to see pump prices decrease. However, Patrick DeHaan, an analyst with GasBuddy.com, cautioned during an interview on NPR, the Atlantic Hurricane season, which can send storms sweeping through the Gulf of Mexico, could raise prices in the short term.

        Crude prices also rose a bit this week after the U.S. Bureau of Labor Statistics reported a smaller than expected increase in inflation last month at 8.5 percent. The rise in market optimism helped to boost prices despite EIA reporting that total domestic crude supply increased by 5.4 million barrels last week.

        The rising price of gasoline and crude oil has been a key factor in the rising rate of inflation since it pushes up the price of everything from the cost of freight and distribution to the price of food and airline tickets, according to analysts.

        The EIA noted gas demand dropped from 9.25 million barrels per to 8.54 million last week. The rate is 1.24 million barrels lower than last year and in line with the need at the end of July 2020, when COVID-19 restrictions were in place and fewer drivers hit the road, AAA said.

        Los Angeles gas prices on 11-21-21
        Gas prices are still highest in California, but there is disparity across the U.S.

        The lower prices spread unevenly across the country

        Prices is California, which historically has always had the most expensive gasoline, still exceed $5 per gallon but have retreated from the more than $6 per gallon, which prevailed in the state’s urban areas earlier this summer.

        However, the price of gasoline has dropped across the broad mid-section of the country, stretching from Colorado to West Virginia, AAA reported.

        Since last Thursday, the largest decreases of at least 17 cents per gallon have been in Colorado, Arizona, Illinois, Maine, Ohio, Kansas, West Virginia, Wyoming, Arkansas and Indiana. 

        Historically, the price of gasoline is not much higher than it was during the summer of 2008 on the eve of the Great Recession in 2008 when it peaked at $4.11 per gallon, according to Business Insider.

        However, gas prices have become a political issue as Republicans blame the Biden administration for the higher prices, despite impact of the Russian invasion on global prices.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published
        New cars

        Week Ahead: Numbers, Numbers and More Numbers

        Today

        The Rearview Mirror: All That the Name Implies

        Jan. 28, 2023
        GMC Hummer SUT winter testing

        Top Tips for Improving EV Range in Cold Weather

        Jan. 27, 2023

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: