American drivers are starting to see lower gas prices, reaching lower levels than before the Invasion of Ukraine in February. Despite that, prices are still higher than last November when President Joe Biden announced the release of strategic petroleum reserves.
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The White House has credited the president’s actions to lower costs. However, other economists are pointing to other factors involved. The national average is $3.54 a gallon. Gas prices have fallen nearly 30% since the summer. President Biden’s Chief Economic Advisor Jared Bernstein said:
“A number of months ago, the president oversaw the release of 180 million barrels of oil from the strategic reserve,” “I want to be clear. When I’m talking about release from reserves, I am by no means saying that is the only thing going on. Every time you hear China going one way or another, very quickly the price of oil moves following that news.”
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Texas Gas Prices
Texas is one of a few states that have low gas prices in the country, sitting at $2.85 a gallon. Texans are seeing the benefits of nearby oil refineries and lower gas prices. Bernstein touts the president’s actions for playing an important part in the drop in prices.
SMU’s Cox Maguire Energy Institute’s Bruce Bullock said the main reason for the declining gas prices is the fact that China is still under lockdown and their demand is lower than what it would normally be.
The lower gas prices are said to come with a price. How long prices will remain this low will depend on whether the US enters a recession. The decline in prices should also translate into lower food costs. Economists have said that gas prices usually go up between January and June.
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