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Gas prices in the United States fell below $4 a gallon on Thursday, retreating to their lowest level since March, a sign of relief for Americans struggling with historically high inflation, and a political boost for President Biden, who has been under pressure to do more to bring down prices.
The New York Times reports that the national average cost of a gallon of regular gasoline now stands at $3.99, according to AAA. That’s still higher than it was a year ago but well below a peak of nearly $5.02 in mid-June. The average price has fallen for 58 consecutive days.
Energy costs feed into broad measures of inflation, so the drop is also good news for policymakers who have struggled to contain rising prices. More than half the cost of gasoline at the pump is determined by global oil prices, which have tumbled to their lowest point since the war in Ukraine began in February, a drop that reflects in part the growing concern of a worldwide recession that will hit demand for crude.
Nearly two-thirds of people in a recent AAA survey said they had altered their driving habits because of high prices, mostly by taking fewer trips and combining errands. On Aug. 11, the group of oil-producing countries known as OPEC revised down its forecast for global oil demand this year.
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