The average price of regular self-serve gasoline in San Diego County dipped 1.6 cents to $6.324, the lowest since April 13, following a six-day streak of prices dropping.
According to the AAA and the Oil Price Information Service, the average price of gasoline dropped 4.9 cents over six days, bringing some relief to drivers. The streak of decreases follows a run of 19 increases in 20 days totaling 35.5 cents.
The average price is 4.6 cents less than one week ago but 30 cents more than one month ago and $2.097 higher than one year ago.
According to the U.S. Energy Information Administration, the dropping pump prices are due to a sharp drop in Los Angeles wholesale gasoline prices and a slight downturn in consumer demand. Doug Shupe, the Automobile Club of Southern California's corporate communications manager said this is likely due to record-high prices.
The national average for a gallon of gas fell below $5 to $4.968 after dropping for the seventh consecutive day following an 18-day streak of increases. Drivers saw gas prices drop 4.8 cents over the past seven days.
The national average price of gasoline is 37.5 cents more than one month ago and $1.897 higher than one year ago. According to Shupe, the primary cause of price decreases is the tumbling cost of oil, which fell from $122 to around $110 per barrel due to fears of a global recession and its associated economic slowdown.
“The recent high prices may have led to a small drop in domestic gasoline demand as fewer drivers fueled up last week,” said Andrew Gross, AAA spokesperson. “This dip, coupled with less costly oil, has taken some steam out of surging pump prices. And this is happening right before drivers gas up for what AAA forecasts will be a busy July 4th travel weekend.”
President Joe Biden told reporters on Monday he is considering a temporary pause in the federal gasoline tax. This action would save U.S. consumers 18.3 cents per gallon.
The move would require congressional action.
The administration has been finding areas of relief to provide consumers amid the surging prices in multiple industries caused by global supply chain disruptions brought by Russia’s war on Ukraine.
In March, the Biden administration authorized the release of one million barrels of oil a day from the country's Strategic Petroleum Reserve for six months, in an effort to ease high gas prices.