Gas Prices Now Cheaper Than Before The War in Ukraine
Gas prices continue to fall, which is good news, right? Falling gas prices may actually be a sign that the overall economy here in the U.S. might be in trouble.
No one is going to complain about lower gas prices. In fact, Axios reports that the average price of gas in the U.S. has fallen to $3.47 a gallon. That is less per gallon than we were paying right before Russia invaded Ukraine and gas prices soared to near-record highs. It is the first time since February that the average price of gas in this country has been below $3.50 per gallon.
Axios reports that prices at the pump have dropped 12 cents since last week and 29 cents over the past month, according to AAA. In fact, at the current pace, we could see gas below three dollars per gallon by Christmas. Talk about your last-second great gift! But despite the good news for travelers, low gas prices can actually be a sign that bad economic times could be on the horizon.
One reason that gas prices are down? China. Newsweek reports that the country is experiencing a COVID surge and people aren't traveling. The European Union is entering a recession and there continue to be economic concerns in the United States. That has people traveling less. Newsweek reports that all of those factors don't bode well for oil prices, thus lowering the price at the pump.