Gas Prices Decline For 10th Straight Week, Falling To $3.89 A Gallon

By Bill Galluccio

August 23, 2022

Gas Station Frustration
Photo: Getty Images

Gas prices are continuing to fall across the country. The average cost of gasoline dropped to $3.89 a gallon as the price has declined for 70 straight days.

When the drop in fuel costs began in mid-June, gas prices stood at a record high of $5.02 a gallon. Despite the recent decline in prices, gasoline prices are still 73 cents higher than last August.

According to AAA's gas price tracker, Hawaii has the most expensive gas in the country at $4.32 a gallon. California is in a close second with an average gas price of $4.31 a gallon. Arkansas boasts the cheapest gasoline in the country, where it is $3.40 a gallon, nearly 50 cents cheaper than the national average.

Gas prices are retreating in part due to reduced demand. As prices soared to record highs in the spring and early summer, consumers responded by cutting back on their driving to use less gas. In addition, fears of a recession in the U.S. and concerns about the economy in China resulted in lower oil prices.

The Biden administration's decision to release oil from the national stockpile eased supply issues following Russia's invasion of Ukraine, which helped bring down costs.

While officials expect gas prices to keep dropping in the coming months, as Americans return to their normal routines after the summer and use less fuel, they warn that the global market is volatile and unforeseen circumstances could send prices soaring again.

"This is a global market. Anything could happen, especially as it relates to what's going on in Russia and Ukraine," one administration official told NBC News.

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