"As electric vehicle (EV) makers have discovered, America runs on gasoline. About 290 million registered vehicles cruise the roads. U.S. drivers spend about $550 billion a year on fuel. That is over $2,500 per household. The median after-tax income of Americans is about $60,000. So, cheap gas is not a trivial contribution to help U.S. household spending."
"Some states have much lower gas prices than the national number, and a continued decline could bring their prices close to $2. In Oklahoma, the average price is $2.22. In Colorado and Texas, they are $2.39 and $2.41, respectively. Some states have plunging gas prices. Just in the past week, Nevada's has dropped 13.2 cents, Indiana's and Utah's by 12.6 cents each, Ohio's by 11.6 cents, and Oregon's by 11.3 cents."
"The primary reason gas prices have fallen is a sharp drop in oil prices. Benchmark West Texas Intermediate crude is priced at $56 a barrel. That is down from $80 in January. The United States is pumping crude at near record rates, while Russian oil is sneaking into India and China, and OPEC+ has cut high production levels, though not by much. All this is to say that gas prices will remain lower, which is a benefit to consumers. Among the only components of the consumer price index that continue to fall are fuel and oil."
About 290 million registered vehicles in the United States generate roughly $550 billion in annual fuel spending, equaling more than $2,500 per household and stressing budgets with median after-tax income near $60,000. The national average price for regular gasoline has fallen to about $2.85 per gallon, with expectations of further declines toward year-end. Several states already report much lower averages, with Oklahoma near $2.22 and multiple states showing double-digit cent weekly drops. The decline stems largely from lower crude prices, abundant U.S. production, shifting global flows, and modest OPEC+ cuts, easing consumer fuel burdens and lowering related CPI components.
Read at 24/7 Wall St.
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