US Gasoline Prices Fall for 60 Straight Days in Win for US Holiday Spending

Source: By Chunzi Xu, Bloomberg • Posted: Tuesday, November 28, 2023

Gasoline prices have fallen for 60 consecutive days — the longest streak of declines in more than a year — letting American drivers pass on savings at the pump to consumer retailers during the US economy’s all-important holiday season.

A gallon of gasoline now costs $3.25 on average in the US, more than 60 cents below the year’s peak in mid-September and about 30 cents cheaper than this time last year, according to data from the American Automobile Association. In 14 states, average prices are now less than $3 a gallon.

Cheaper pump prices are welcome news for President Joe Biden, whose reelection campaign is touting “Bidenomics” as the answer for inflation-plagued consumers. The gasoline reprieve may also give retail stores a boost during the critical year-end shopping season by padding pockets with a little more cash. US consumers, whose consumption spending makes up around two-thirds of the US economy, spent a record $9.8 billion online during Black Friday.

Gasoline prices are expected to continue falling following lower prices for crude oil, the biggest component in pump costs.