Gas Prices Are Cheaper Than a Year Ago — But Are They Expected Stay Low?
The cost of an average gallon of gas in the U.S. is now $3.329.
After a year of rising gas prices — the average cost of a gallon of gas reached record highs in June — there's finally good news at the pump.
Prices have steadily declined over the past few months, and this week the national average for the cost of a gallon reached $3.329, according to AAA, which is down from the average of $3.653 a year ago.
The decline in energy prices could help ease some rising costs associated with inflation. While the November numbers have yet to be released, inflation cooled down in October, marking the smallest 12-month increase since January, according to the Bureau of Labor Statistics.
However, some experts have concerns about how long gas prices will remain relatively low. The Organization of the Petroleum Exporting Countries (OPEC+) has decided to maintain its plan to cut output by 2 million barrels per day, or about 2% of world demand, AAA reported. It remains uncertain whether this initiative will drive prices up again, but the organization intends to implement its plan through 2023.
"Gas prices are dropping sharply and are only a nickel more per gallon than a year ago," said AAA spokesperson Andrew Gross said in a statement. "But with oil being the main ingredient in gasoline, OPEC+'s move could slow this decline. However, the gas price will likely soon be lower than it was a year ago."