Gasoline cost nearly $4 a gallon last spring. Now it’s inching closer to $3.
That is giving worried families some relief and easing one of the biggest drags on the economy.
Nationally, gasoline has fallen to $3.65 a gallon, down 30 cents from early May. If it drops to $3.35 next month, as some experts predict, the typical driver will be paying $33 less a month than in the spring.
In Denver, average pump prices were more than 20 cents lower than the national average Tuesday, checking in at $3.439.
Maybe that’s just enough for a couple of Big Macs a week or an extra trip to Walmart, but it’s a psychological boost for consumers.
“It’s not the saving of the economy, but it definitely will put a smile on a few consumers’ faces,” said Michael Lynch, president of Strategic Energy & Economic Research.
Gasoline prices track oil, which has fallen more than $30 to just less than $80 per barrel over the same period. Gasoline usually lags a drop in oil prices by a few weeks as refiners buy the crude, change it into fuels and ship it to gas stations.
Most of crude’s drop has come in the past two weeks as the U.S. lost its top credit rating and reports showed economic growth stalling. Analysts say oil’s decline could translate to a drop in pump prices of a quarter within two weeks and as much as 30 cents within a month. The typical driver uses 50 gallons of gas a month.
Airline passengers could see lower fares by this fall, according to Basili Alukos, an analyst for Morningstar. For airlines, jet fuel is more than one-third of their costs.
