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Accounting & Audit

Will Gas Prices Go Under $2.50?

The administration took “unprecedented steps to moderate supply and demand,” such as releasing oil from the U.S. Strategic Petroleum Reserve, Granholm said.

Gas price at $3.19 per gallon, in Moore, Oklahoma. Aug. 13, 2022. Credit: Isaac M. O'Bannon - CPA Practice Advisor.

By Michael Hirtzer and Victoria Cavaliere –
Bloomberg News (via TNS), with additions.

U.S. Energy Secretary Jennifer Granholm said gasoline prices should fall further after dropping to less than $4 a gallon for the first time since March. In the Midwest, including Oklahoma, Kansas, Texas and the Gulf States, gas prices have already dipped to near the $3.00 per gallon mark.

“We hope that that’s true but, again, it can be impacted by what’s happening globally,” Granholm said on CNN’s “State of the Union” on Sunday.

Sliding fuel costs have helped slow inflation that has run at four-decade highs this year, hitting consumer spending and prompting Republicans to hammer President Joe Biden for rising prices. The nationwide average U.S. gasoline price hit a record of $5.016 in June.

Biden has been touting the decline in gasoline prices ahead of the midterm elections in November, where Democrats are defending a narrow House majority and a one-vote advantage in the Senate.

The administration took “unprecedented steps to moderate supply and demand,” such as releasing oil from the U.S. Strategic Petroleum Reserve, Granholm said.

She pointed to the Inflation Reduction Act, a package of climate, energy, health care and tax measures passed by Congress and awaiting Biden’s signature, that will give rebates to people buying new electric vehicles and promote charging stations.