Gasoline in the US, below 3 dls. for the first time since 2021

Gasoline in the United States had an average price below $3 a gallon last week for the first time since June 2021, after achieving six consecutive weeks of decline.

From December 13 to 19, regular gasoline had an average price of $2,994 per gallon, its lowest level in 18 months, according to data from the United States Energy Information Administration (EIA).

In the last six weeks, the price of fuel has dropped 19.58%, as international oil prices have dropped by the same amount.

The American West Texas Intermediate fell 16.49%, going from 88.96 to 76.09 dollars per barrel, while the Brent of the North Sea fell 17.66% from 95.99 to 79.99 dollars per barrel. The Mexican export mix plummeted 22.87% in the period, going from 82.79 to 65.22 dollars per barrel.

In the first week of December, the price of crude oil reached its lowest level since the end of last year, given the expectation that demand will fall due to an economic slowdown.

“Finally, things are starting to feel a little more normal with much more affordable gas prices. Americans are saving about $25 per tank compared to prices this summer,” Patrick De Haan, head of Petroleum Analysis at GasBuddy (a firm that collects fuel prices throughout the country) said in a note. width of the United States).

Since the all-time high that hit at the beginning of June of this year (4,844 dollars per gallon), when international oil prices rebounded above 120 dollars per barrel amid supply fears due to the war between Russia and Ukraine , gasoline has dropped 38.19 percent.

Just last week, the price of gasoline fell 3.70% or 0.115 dollars, less than the weekly drop it had eight days earlier (-4.63%).

The main component of the price of gasoline in the United States is that of oil, so there is usually a significant correlation between the two, that is, if oil increases, so does fuel.

According to the EIA, the price of regular gasoline in the United States is made up as follows: 55% of the total is attributable to oil, followed by distribution and marketing costs (18%), taxes (14 %) and refining cost (13%).

The GasBuddy analyst warned that although the end of the year is positive, risks still prevail that could cause a rebound in fuel prices in the spring of the following year, “so motorists should keep their expectations in check and enjoy while they can of gasoline below 3 dollars”.

Texas, the cheapest

Of the 50 states of the American Union, Texas is where the cheapest price is for fuel. In the border state, the price of regular gasoline averaged $2,551 per gallon last week.

In fact, it accumulates eight weeks downward, a period in which it has decreased by about 22.11%, while since the maximum it touched at the beginning of June (4,656 dollars per gallon) it has been reduced by 45.38 percent.

Texas has one of the lowest gasoline prices in the United States thanks to being one of the states with the lowest levels of fuel tax.

For each gallon of gasoline, 20 cents are charged in taxes, according to the IGEN site.

In contrast, the state where gasoline is most expensive is California, where last week regular cost an average of $4,198 per gallon.

Unlike Texas, California’s gas tax is one of the highest, at $0.539 per gallon, according to IGEN.

Gasoline in Washington state sold for $3,759 a gallon last week, while in New York and Massachusetts it traded at $3,759 and $3,363 a gallon, respectively.

In Minnesota it averaged $2,971 per gallon; in Florida, $2,951; in Ohio, $2,881; and in Colorado, $2,757.

GasBuddy estimates that the national average gasoline price on Christmas Eve will remain below $3.

sebastian.diaz@eleconomista.mx