Gas Station Charges Less Than $2.50 Per Gallon: How Inflation, Energy Prices Are Faring Now

In the last few years, inflation has become one of the most concerning issues for many Americans. Whether it's housing costs, restaurant tabs or at the gas pump, prices have increased more than most consumers are comfortable with.

But in a potential sign of relief, gas prices are falling, and some stations are now selling gas for less than $2.50 a gallon, according to Patrick De Haan, aka GasBuddyGuy. 

"$2.48/gal- that’s the gas price at the cheapest station in the nation today, a Circle K in Gulfport, MS," De Haan wrote on X. "Diesel at the station goes for $2.85/gal."

The Data: AAA's website shows that the national average for a gallon of gas is around $3.30. A year ago, it was $3.80, and the highest average ever recorded was on June 14, 2022, when a gallon of gas was going for more than $5.

Read Also: OPEC+ To Delay Output Increase For 2 Months Till Prices Stabilize: Report

Data shows inflation has come down significantly from its 40-year high in May 2022. July's consumer price index (CPI) report showed that prices increased 2.9% year-over-year, still higher than the Fed's 2% target, but much lower than what it was a year before.

Gas prices can be an early indicator of price fluctuations in the overall economy. Two years ago when inflation was closer to 10%, diesel fuel was nearly $6 a gallon on average. This increases the cost to ship goods, which means companies will often charge more to pass off those increased costs to customers.

Gas prices are now falling amid a backdrop of weakness in the overall oil industry. The price of crude oil is down more than 20% since April, as worries of a global economic slowdown, particularly in China, mount.

So, while it's good news for commuters, lower gas prices could be the sign of a weaker economy. On the other hand, lower gas prices means that consumers have more money to spend in other areas, potentially stimulating the economy.

Read Next:
• Stocks Tumble On Jobs Data, Nasdaq 100 Eyes Worst Week In 2 Years As Semiconductors Slump: What’s Driving Markets Friday? 

Photo: Shutterstock