Amid action by the Biden administration like releases from the Strategic Petroleum Reserve, which is a national stockpile, gas prices are continuing to fall amid the holiday season, further distancing the nation from the record highs seen much earlier this year. Increasing the national energy supply through releases from the reserve stands to help lower prices.
Biden’s administration has also announced plans to replenish the national reserve. The national average for a gallon of regular gas reached $3.245 on Tuesday, which is substantially lower than the average a month ago of $3.776. It’s also below the average from a year prior, which was $3.33. Like with other recent drops in national averages for the price of gas, the Biden administration touted new developments. “The national average price of a gallon of gas is now $3.25. That’s a decline of $1.77 since June – giving Americans a break at the pump and growing our economy,” the White House posted on Twitter Tuesday.
It’s not the only positive economic news recently emerging from the Biden administration. A federal report that was released Tuesday covering inflation for the month of November showed both the yearly and month-to-month rates falling compared to the prior month. The drop in the yearly inflation rate, which is calculated by comparing prices to those seen a year prior, was sharper in November than at least some economists were expecting. Gas prices are calculated into some of the primary inflation measurements in Consumer Price Index data, so drops in those costs significantly impact the broader portrait.
A report from AAA, which catalogs information on gas costs around the United States, noted there has also been lower demand for gas at least in part due to expected patterns in this time of year — although that same report also noted higher supplies impacting costs. There apparently are also worries about potentially lasting impacts to demand for crude oil, concerns that could drive costs lower as producers meet demand. In the meantime, the Biden administration is also implementing measures to help small business owners and many others across the country deal with high or rising costs. The recently enacted piece of cornerstone legislation known as the Inflation Reduction Act outlines tax credits for small businesses transitioning to solar power, making improvements to energy efficiency in buildings, and acquiring vehicles running on clean energy. In support of the supply chain, the legislation also provides tax incentives for the production of equipment used in clean energy in the United States.
The national average price of a gallon of gas is now $3.25. That’s a decline of $1.77 since June – giving Americans a break at the pump and growing our economy.
— The White House (@WhiteHouse) December 13, 2022
Image: Gage Skidmore/ Creative Commons