Gas prices in Pennsylvania have finally dropped below $4 per gallon after reaching record highs earlier this year.
According to the AAA East Central Gas Price report, prices are thirteen cents lower this week at $3.975 per gallon.
In the Lehigh Valley prices dropped even lower.
The average price for a gallon of gas on Sept. 7 was $3.895, down from $4.009 on Aug. 31, but still higher than the average price on Sept. 7, 2021 when it was $3.246 per gallon.
The national average for a gallon of gas fell almost eight cents in the past week to $3.76. Today’s national average is 30.5 cents less than a month ago but almost 58 cents more than a year ago.
Lower oil prices, modest domestic gasoline demand, and a so-far quiet hurricane season are combining to drive pump prices lower, according to AAA.
According to weather analysts, it’s the first time in 25 years that a named Atlantic storm did not develop in August.
Meanwhile, oil prices dipped on recent decreased Chinese manufacturing output due to lower demand for goods and new COVID‑19 outbreaks in critical industrial cities.
The association said this is fueling fears that oil demand could drop in China, the world’s largest importer of crude oil.
Additionally, prices declined most of last week amid market concerns that crude demand will fall if economic growth slows or stalls due to a recession. EIA’s latest weekly report showed that total commercial crude inventories decreased by 3.4 million barrels to 418.3 million barrels.
According to data from the Energy Information Administration (EIA), domestic gas demand increased slightly from 8.43 million barrels per day to 8.59 million barrels per day last week. However, the rate is nearly 1 million barrels per day lower than the last week of August 2021. Also, total domestic gasoline stocks decreased by 1.1 million barrels to 214.5 million barrels.