Gasoline prices drop eight cents in one week: AAA

Source: BY RACHEL FRAZIN, The Hill • Posted: Tuesday, April 12, 2022

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The country’s average gasoline price has dropped about eight cents over the past week, and about 13 cents over the last two weeks, according to figures from the American Automobile Association (AAA).

AAA listed the country’s average price at $4.11 per gallon on Monday, down from $4.19 a week ago and $4.24 two weeks ago.

The recent drop comes after several countries, including the U.S., announced recently that they would release additional oil from their reserves.

After the U.S. announced late last month that it would add one million barrels per day to the market over six months — the largest-ever release from its Strategic Petroleum Reserve — analysts told The Hill that the move could result in modest price drops.

Meanwhile, the recent drops in price come amid increased coronavirus cases in China and subsequent lockdowns, which is decreasing demand.

Prices for crude oil, from which gasoline is made, have also dropped in recent days. U.S. crude stood at around $95 per barrel on Monday morning, down from as high as $103 per barrel a week ago and even higher in late March.

Gasoline and oil prices soared following Russia’s invasion of Ukraine, as many buyers rejected Russian barrels, cutting the supply of oil on the market. Prior to that, prices had already been relatively high since production has not recovered to pre-pandemic levels.

Although the move was largely caused by external factors, Republicans have sought to use gasoline prices to criticize Democrats and the Biden administration. Democrats, meanwhile, have criticized both Russia and oil companies for the spike in prices.

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