Consumer inflation concerns, spurred by higher prices at the pump and grocery store, reportedly helped lead to several backorder cancellations from some of the largest dealerships in the country in recent weeks.
However, a federal decision to release oil from the Strategic Petroleum Reserve (SPR) may be bringing fuel prices down just as concerns about consumers ramp up.
The U.S. Energy Information Administration reported average regular gasoline prices nationwide fell 6 cents a gallon from the previous week to $4.17 a gallon. Average diesel prices nationwide fell 4 cents a gallon from the previous week to $5.14 a gallon.
AAA reported the decision to release 1 million barrels of oil a day for six months from the SPR helped send oil prices down.
Dipping gasoline demand is defying seasonal trends for a third straight week, AAA reported, perhaps because of higher pump prices and consumers altering their driving habits.
“The upward push on oil prices caused by Russia’s war in Ukraine is meeting stronger downward pressure from the planned SPR oil release and increased COVID fears in China,” said Andrew Gross, AAA spokesperson. “And lower global oil prices are reflected in falling pump prices for consumers in the U.S.”
Weekly average gas prices fell by 27 cents a gallon in Connecticut and 10 cents a gallon in Michigan. Missouri ($3.73), Oklahoma ($3.75), Kansas ($3.75), Arkansas ($3.77) and Maryland ($3.79) reported the lowest average gasoline prices last week, AAA reported.
