INDIANAPOLIS — Are lower gas prices on your Christmas wish list? Analysts predict the national price of gasoline may fall under $3 per gallon by Christmas, but it isn’t all good news.
Analysts from AAA say the national average pump price for a gallon of gasoline dropped 12 cents in the past week. This is the steepest weekly decline since early August. The national average is down 22 cents from a month ago but still remains 15 cents per gallon higher than this time last year.
GasBuddy analysts say as Americans hit the road for Thanksgiving, a new record was set for the largest single-day decline in the national average. They say many areas are falling to the lowest level since Russia’s invasion of Ukraine in February.
“It’s entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
As of the time of this report, the average price of gas in Indiana is $3.611, the only neighboring state with a higher average gas price is Illinois. The cheapest gas prices can be found in Evansville, with an average price of $3.237 for regular gas. Bloomington has the most expensive gas prices at $3.932.
Not only have prices for regular gasoline fallen nationwide, but GasBuddy also says 47 states have seen diesel prices falling as well, providing relief ahead of the holidays and helping to stem the rise in inflation.
However, the falling gas prices come as the cost of oil dropping amid fears of an economic slowdown around the globe. GasBuddy analysts say oil prices are under heavy selling pressure as China sees protests for its zero-Covid policies and shutdowns of major cities.
In addition to China’s Covid crisis, GasBuddy says the Biden Administration approved Chevron to export crude oil from Venezuela, as the administration sets the stage for discussions on future exports, adding downward pressure to oil.
An upcoming meeting may result in gas prices spiking again. AAA reports that the Organization of the Petroleum Exporting Countries and its allies, including Russia, are meeting on December 4. In October, the organization decided to cut its collective crude oil output. If they decide to revise this agreement, prices could spike.