As summer winds down, gas prices are slowly starting to fall despite an economy in turmoil.
See: 22 Side Gigs That Can Make You Richer Than a Full-Time Job
Find: 7 Surprisingly Easy Ways To Reach Your Retirement Goals
Some states are seeing prices in the $3 range, numbers not seen since the beginning of the Russia-Ukraine war. In June 2022, prices at the pump exceeded $5 per gallon.
Experts say the national average may fall below the $4 mark soon, as 21 states already have prices of $3.95 and under, according to aaa.gasprices.com.
Patrick De Haan, head of petroleum analysis for GasBuddy, told TheStreet that prices in a few states could even drop below $3 within the week. The states most likely to benefit from such a steep dip would be Texas, South Carolina, Oklahoma, Georgia, Arkansas, Tennessee, Mississippi, Alabama, Louisiana and Kentucky.
Such a circumstance would put prices lower than this time last year, when the national average was $3.18 for regular unleaded, based on AAA figures.
Why Are Gas Prices Falling?
Gasoline prices are determined by the price of crude oil, which varies based on supply, consumer demand and other factors. Taxes also play into prices, and many states have enacted "gas tax holidays" this summer to help consumers fill their tanks.
Domestic supply increased last week by 4.5 million barrels (to a total 426.6 million), which is helping to drive prices down, AAA reported.
Crude oil prices fell last week, with West Texas Intermediate, one of the benchmarks, dipping below $90 a barrel - its lowest price since Feb. 10. Brent crude, another benchmark, fell to $95.
Are There Fewer Drivers on the Road?
Most of the aforementioned metrics bode well for further declines.
Discover: How Much Does a Person on Social Security Make?
SNAP Benefits: How Long Do They Last?
However, that's not necessarily good news for the economy. One reason for the price drop is a reduction in demand for gas as drivers cut back. A recent AAA survey found that 64% of U.S. adults had changed their driving habits since March, when prices first started rising. Twenty-three percent said they made "major changes," including driving less (88%), combining errands (74%) and shopping and dining out less frequently (56%).
5 Affordable Places To Retire Near the Beach
See Our List: 100 Most Influential Money Experts
7 Surprisingly Easy Ways To Reach Your Retirement Goals
35 Useless Expenses You Need To Slash From Your Budget Now
This article originally appeared on GOBankingRates.com: Gas Prices Could Soon Dip Below $3 in These States - Is Yours One?