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Gas prices are falling — Here’s why it’s happening and whether it can continue

A customer pumps gas at an Exxon gas station on July 29, 2022 in Houston, Texas.

Brandon Bell | Getty Images

Gas prices are below $4 for the first time since March, but the market remains precarious and experts said it’s too early to know if the move lower will hold.

The national average for a gallon of gas has fallen for the last 58 straight sessions, according to AAA, and is now $3.99 per gallon. The fall from June, when prices topped out above $5, has been fast.  

Here’s what could happen next.

Why are prices falling?

Prices at the pump have declined for a number of reasons.

In the commodity market there’s a common saying that “the cure for high prices is high prices.” And that’s proved true. In other words, high prices bring down demand, which brings down prices.

Some driving is necessary — to get to work, for example — but with prices at record levels, consumers might decide not…

Read more at www.cnbc.com

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