US Gasoline Prices Poised for Decline as Oil Prices Plunge

The national average retail price of regular grade gasoline surged 30.2 cents per gallon over the past month, reaching $4.176. This is a significant increase from last year's prices, which were 94 cents per gallon lower at this time.

The price jump in the first two weeks was more than 22 cents, but the latest two-week jump was much smaller, at 7.8 cents per gallon. The pace of price increases has slowed down, and it appears to be ending.

The oil prices that guide gasoline prices have dropped significantly, deflating by $11.13 per barrel over the past two weeks due to official White House statements about a potential deal ending the US-Iran conflict over vessel passage through the Strait of Hormuz. If this price drop were converted to cents per gallon, it would be a 26.5-cent crash in just two weeks.

The wholesale prices that station owners and operators pay have been dropping even more steeply than crude oil, with unbranded rack falling close to 37 cents per gallon for regular grade over the past two weeks. Branded rack and jobber-supplied dealer buying prices dropped nearly as much, while East Coast unbranded rack fell by a significant 42.23 cents per gallon since July 24.