Sep 12, 2022 - Economy

Gas prices keep plunging

Data: U.S. Energy Information Administration; Chart: Axios Visuals

Gasoline prices continue to tumble throughout the U.S., taking the starch out of the stiff rise in inflation and cheering up consumers.

Why it matters: Average national gasoline prices hit $5.02 a gallon back in June, amplifying the national fixation on inflation.

Driving the news: According to AAA, a gallon of regular was an average of $3.74 on Friday, more than 25% lower than the June peak.

Yes, but: Not everyone's experience at the pump will mirror the national average.

  • California typically has some of the most expensive gas because the state requires refiners to produce a blend that meets more stringent anti-pollution requirements than much of the rest of the country.
  • California also has higher than average gasoline taxes, which add to the cost at the pump.

What we're watching: The futures prices for "reformulated blendstock for oxygenate blending," or RBOB. This wholesale gasoline benchmark tends to move in advance of the retail gasoline prices you see while filling up.

  • It's down more than 10% in the last 10 trading sessions, suggesting lower retail prices are still to come.
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