Gas Prices Dropping; Who Gets The Credit?

The national average price of gasoline has dropped about 18 cents over the past week, to three dollars and 94 cents a gallon, according to AAA.

In California, prices have fallen about 19 cents, to $5.67 cents a gallon.

That’s a $1.73 more than the national average, making California the most expensive state in America for gasoline.

What’s driving the decline? Crude oil prices have fallen sharply (though not as sharply as you might think—see the chart below), as markets anticipate President Trump bringing a possible easing of the war with Iran.

Seasonal demand is also declining, and refineries are producing cheaper winter-blend gasoline.  But there may be a political factor.

GasBuddy analyst Patrick De Haan says the election results could increase pressure on Washington to focus on affordability and bringing prices down. However, he emphasizes that seasonal factors, not politics, are primarily responsible for the current decline.

Gas prices were already falling before Election Day.

And while California drivers are finally getting some relief at the pump, they’re still paying approximately 44 percent more than the national average.

You can dig deeper and judge for yourself: