$2.99/gallon: As gas prices continue to plummet, median price on GasBuddy now under $3, app says

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Friday, December 16, 2022
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GasBuddy's metrics dropped its median national gas price to $2.99 as of this morning.

The app helps drivers find the cheapest gas near them, though not all of the country's stations are represented on it.

A gallon of regular gas now sells for an average of $3.18, according to AAA, a decline of 14 cents in the past week and 56 cents in the past month.

The last time the national average was cheaper than $3.18 was Sept 14, 2021, according to AAA.

In New Jersey, there are a couple of stations with regular gas under $3.

But while the price of gas is tracking down for the holidays, Santa will likely not be able to deliver gas under $3 for most of the Tri-State by the New Year.

The AAA average in New Jersey is $3.33, down 16 cents in the past week and 54 cents in the last month.

At that rate of decrease for the rest of the year, the state average would be $3.10 per gallon by the New Year.

In New York, the AAA average is $3.52, down 11 cents in the past week.

In Connecticut, the AAA average is $3.25, down 18 cents in the past week.

The sharp decline in pump prices is encouraging news for consumers after a year of high prices for groceries, rent and other essentials.

It's a remarkable reversal from earlier this year when Russia's invasion of Ukraine helped catapult gas prices above $5 a gallon for the first time ever.

In a sign that gas prices could continue to slide, US oil prices dropped another 3% to $73.58 a barrel Friday morning.

Patrick De Haan, head of petroleum analysis at GasBuddy, told CNN on Friday that the national average may drop below the $3 threshold just in time for Christmas Eve. He noted that by GasBuddy's metrics, the median gas price tumbled to $2.99 as of Friday morning.

The slide in gas prices has been driven by a variety of forces - not all of them positive.

For instance, the same recession fears rocking the stock market have raised concerns in energy markets about weaker demand ahead. De Haan said US gasoline demand has been "quite soft" even for this time of the year, due at least in part to economic uncertainty.

Worries about China's economy and Covid-19 policies have also weighed on energy markets.

On the positive side, US refineries have ramped up production of gasoline, diesel, jet fuel and other petroleum products. US oil companies have also gradually increased supply.

Energy analysts say the Biden administration's release of unprecedented amounts of emergency oil from the Strategic Petroleum Reserve earlier this year has also helped depress prices.

Despite widespread fears earlier this year, Russia's oil exports have not been derailed by the war in Ukraine and sanctions from the West. A European Union embargo on Russian seaborne crude and a price cap, which both went into effect this month, have not so far pushed up the price of oil globally, which many analysts had feared.

"Russian exports have continued to flow. And that's what the market was panicked about back in March," De Haan said.

Information from CNN Wire was used in this report.

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