Gas Prices Just Hit A Four-Year High – Here’s When Experts Say It Could Come Down
According to AAA, the national average for a gallon of gas sits at $4.53 at the time of writing. In the span of a week, prices jumped by nearly 30 cents. Drivers in several states are paying more than $5 per gallon, and some Californians are paying $6 or more. And fuel costs are affecting more than just drivers. In response to skyrocketing prices, airlines are raising fares, and some are suspending flights.
As many Americans struggle with increased prices, many are asking: When will we see some relief at the pump? Unfortunately, the answer is probably not anytime soon. In an interview with NPR, Kevin Book from ClearView Energy Partners, a Washington, D.C.-based independent research firm, laid out the facts. The cost of gas has gone up because the price of oil is higher than at any point in the last four years. The war in Iran is the biggest driving factor; supply is down, and many countries are pulling from commercial inventories and government stockpiles. It’s unknown when the Strait of Hormuz, through which an estimated 20% of the world’s oil supply passes, will reopen, and even when it does, it may take weeks or months for inventory to replenish.
That uncertainty makes it difficult to predict when gas prices may come down. Book states that we should not expect a return to pre-war levels this year. If prices do fall drastically, it likely won’t be a positive sign.
How to save money when gas prices are so high
For most people in America, gas is a fundamental necessity, not a luxury. Many of us drive to work or school every day. Additionally, when gas prices surge, there are typically economic aftershocks. Almost everything transported by trains, trucks, planes, or even ships gets more expensive because the cost to ship it has gone up. Instead of spending money on vacations or new electronics, consumers are focused on groceries and other essentials.
We all want to see cheaper gas, but as Book explained to NPR, a drastic drop in price would very likely indicate a fall in demand due to a recession, when the economy is in decline, and people are losing jobs. It’s a situation few desire, but what can we do in the meantime to save a few dollars when gas prices are so high?
AAA offers drivers several tips and tricks to save a few cents when filling up. First, sign up for any loyalty programs offered by your local gas stations or grocery stores. If you have a credit card that earns cash back when you get gas, use that and pay off the balance before the interest hits. You may also want to adjust your driving style. Driving too fast, changing speeds abruptly, and harsh braking can all affect your fuel efficiency. Compare prices using an app like GasBuddy or AAA Mobile and plan your fill-ups carefully. Data from GasBuddy indicates that Wednesday through Saturday tend to be the most expensive days to get gas, while Sunday and Monday are the best.
