American motorists are getting a measure of relief at the gas pump, with the cost of filling upas oil prices tumble.
The national average on Tuesday stood at $4.88 for a gallon of regular, down nearly 9 cents from a week ago, according to AAA. Worries about the rising risk of a global recession has reduced demand for oil, with the price of crude falling to around $107 a barrel from $110 last week, the travel club noted in a news release on Monday.
"The cost of oil accounts for nearly $3 for every $4.89 at the gas pump. Consumers should find more relief when fueling up if oil prices drop further," AAA spokesperson Andrew Gross said in a statement.
Gas prices could be headed for a third weekly drop, but any abrupt changes to supply could quickly reverse the downward trend, Patrick De Haan, head of petroleum analysis at GasBuddy, cautioned. "Risk remains that when the peak of hurricane season arrives, we could see a super spike at the pump," he said in analysis.
The nation's least expensive market for gas is in Georgia, where the average price is just under $4.39 a gallon, according to AAA.
Prices are already below four bucks a gallon for those filling up at Sheetz, with the convenience store chain on Monday cutting the costs of two types of gas at its more than 640 locations in Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia.
Unleaded 88 (for use in model years 2001 or newer and light-duty trucks, SUVs and flex fuel vehicles) is now running at $3.99 a gallon, while E85, a grade designed specifically for flexible fuel vehicles, costs $3.49 a gallon through July, Sheetz said in announcing a promotion.
In California, where drivers face the highest gas prices in the country, residents are also getting some respite in the form of. The checks are part of a $17 billion relief package that will also suspend the state's sales tax on diesel fuel as part of a budget deal reached by Governor Gavin Newsom and state lawmakers on Sunday.
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