The US national average for a gallon of regular gas has fallen every day since hitting a record high of $5.02 a gallon on June 14.
This 70-day streak of falling prices at the pump is the second-longest on record since 2005, Bespoke Investment Group noted in a report titled “The Great American Summer of Falling Gas Prices.”
The national average for regular gas fell to $3.89 a gallon on Tuesday, from $4.38 a month ago.
Although prices are 73 cents higher than a year ago, the latest drop is significant, especially given the inflation alarm bells set off by the rise above $5 just two months ago.
There are a number of factors behind the drop in gas prices this summer, and not all of them are positive.
First, the $5 proved to be a breaking point for many drivers, with some choosing to drive less. This loss in demand helped balance the market.
At the same time, US recession fears and worries about China’s economy pushed oil prices down sharply, taking gas prices with them.
On the supply side, the unprecedented release of emergency oil from the national stockpile by the US administration, Joe Biden, helped reduce pressure from energy prices.
At its peak in mid-June, the national average for regular gas was up a staggering 50 percent on the year. But after the summer slump, gas prices are now up less than 19 percent annually. That’s just one percentage point more than the average year-to-date change for all years since 2005.