Thank Recession Fears for Lower Gas Prices

Gas prices at a Gulf station in Bensenville, Illinois on September 12, 2022.Photo: Scott Olson (Getty Images)

We’ve won the war, but at what cost? Gas prices are finally on the downward trend again after a brief price rebound, but it’s not for the sake of prices coming down indefinitely. Rather, demand for gas is down because of recession fears. Because of this, the average price of a gallon of gas now sits at $3.87, according to AAA.

That price is a penny lower than it was on Monday, and five cents lower than it was a week ago. Most of that downturn, AAA says, is due to the aforementioned recession fears, which have driven crude oil prices down $7 per barrel. If a true recession happens, fewer people will have money, especially for gasoline and… you can see where this all goes.

Anyway, even before a recession takes hold, demand for gas is down across the country. The organization reports domestic gas demand decreased in the first half of October from an average of 9.47 million barrels per day to 8.28 million barrels per day. In that same time, the total domestic gasoline stock increased by 2 million barrels to 209.5 million barrels in total.

A number of states – especially those out west and in the midwest – have seen some pretty significant drops in gas prices. That can be chocked up to both the lower amount of demand and the fact some previously shuttered refineries are coming back online.

Let’s take a look at prices around the country.

Here is the highest average gas prices in the country in order of highest price for a gallon regular:

California – $6.00 Regular | $6.23 Mid | $6.37 Premium | $6.61 DieselAlaska – $5.40 Regular | $5.63 Mid | $5.81 Premium | $5.45 DieselOregon – $5.30 Regular | $5.55 Mid | $5.74 Premium | $5.74 DieselNevada – $5.23 Regular | $5.47 Mid | $5.69 (nice) Premium | $5.60 DieselHawaii – $5.23 Regular | $5.46 Mid | $5.70 Premium | $5.13 Diesel

Here is the lowest average price of gasoline in the country in order of lowest price per gallon of regular:

Georgia – $3.25 Regular | $3.62 Mid | $3.99 Premium | $4.85 DieselTexas – $3.29 Regular | $3.65 Mid | $3.98 Premium | $4.82 DieselMississippi – $3.32 Regular | $3.68 Mid | $4.04 Premium | $4.88 DieselSouth Carolina – $3.37 Regular | $3.73 Mid | $4.08 Premium | $5.01 DieselArkansas – $3.37 Regular | $3.71 Mid | $4.05 Premium | $4.95 Diesel

Hold onto your butts. Things are about to get wild.