Gas Price Drop May Be Short Lived

(Undated) — Gas prices have fallen, but the decline may not last. According to GasBuddy Head of Petroleum Analysis, Patrick De Haan, average gas prices declined in 47 states over the last week while diesel fell in 39, with the national average price of gasoline posting a double-digit drop per gallon. He says diesel’s decline was roughly half that of gasoline, in part due to continued pressure on refined product markets from ongoing Ukrainian attacks on Russian oil refineries. However, he says the wild ride continues. Iran is pushing back against a reopening of the Strait of Hormuz, and oil prices edged modestly higher in Sunday night trading, signaling that the recent relief may not last. De Haan says with the Strait remaining closed, “upward pressure” on fuel prices could return quickly, and if things don’t go well, the national average could climb to its highest level ever recorded this late in the calendar year. He says for now, drivers should “enjoy the dip,” but keep a close eye on how the Strait situation develops in the days ahead. The current national average is $4 a gallon.