With gas prices on the decline, many Tristate residents are wondering just how low those prices will go, and will it be enough to make a difference under the tree?

Pain at the Pump

When Russia invaded Ukraine back in February, drivers in the United States saw the prices at the pump soar as the cost of oil increased. The national average for a gallon of gasoline rose to an all-time record high in June 2022, when it topped out at $5.016.

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Steadily Dropping

Now, months later and just in time for the holidays, we are seeing those prices fall, leaving many Americans with a little more wiggle room in their wallets this season. CNN reports that oil prices are the lowest they have been since December 2021.

US oil prices have fallen to their lowest level since December 2021 on concerns that protests in China against Covid-19 lockdowns will dent demand.

Global oil prices have fallen about 35% since June as strict coronavirus restrictions in China have kept demand weak, and as some of the world’s major economies have signaled they are heading toward a recession.

 

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Price at the Pump

Currently, the national average for a gallon of gas at the pump has dropped to under $3.50 a gallon to $3.47, according to AAA. In the Tristate, it varies with the average for Illinois at $3.734 and Indiana at $3.536. Meanwhile, in the Commonwealth of Kentucky, a gallon of gasoline averages just $3.179.

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Will It Continue to Fall?

The big question is, will consumer gas prices continue to fall as we get closer to the holidays and if they do, just how low will they go? According to oil and refined products analyst, Patrick De Haan via Twitter, the cost of a gallon of gas could dip below $3 for Christmas.

The national average continues to decline, $3.421/gal thus far, right on level with the fast case model. We're just 4.5c/gal higher than last year, or 1.3%. Hoping for $2.99/gal around Christmas!

 

How Does it Translate Under the Tree?

How the savings at the pump will translate to consumer spending elsewhere still remains to be seen. Will you be spending the money you save at the pump on your holiday gifts, or will you be saving it for a rainy day?

LOOK: See how much gasoline cost the year you started driving

To find out more about how has the price of gas changed throughout the years, Stacker ran the numbers on the cost of a gallon of gasoline for each of the last 84 years. Using data from the Bureau of Labor Statistics (released in April 2020), we analyzed the average price for a gallon of unleaded regular gasoline from 1976 to 2020 along with the Consumer Price Index (CPI) for unleaded regular gasoline from 1937 to 1976, including the absolute and inflation-adjusted prices for each year.

Read on to explore the cost of gas over time and rediscover just how much a gallon was when you first started driving.

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