The national average price of gasoline fell below $4 per gallon this week for the first time in five months. The average price per gallon was $3.99 on Tuesday at locations tracked by fuel analysis platform GasBuddy. The national average for a gallon of gasoline was $2.88 on Monday.

Americans pay nearly $400 million less per day than they did in June. That was down by more than $1 compared to the all-time high of $5.03 on June 14. The Russia-Ukraine war further upended global fuel shipments that were already struggling to meet demand.

Gas prices have fallen steadily as the US economy and others around the world brace for the looming possibility of a recession. Headline inflation was 8.5% last month, down from 9.1% in June, according to the Labor Department data released on Wednesday. The US economy is expected to be in recession by the end of the year.

The price of oil, a key input for retail gas prices, has pulled back. De Haan projects that gas prices will continue to fall by as much as 25 cents per gallon over the next few weeks. West Texas Intermediate crude oil, the US benchmark, was trading below $90 per barrel as of Wednesday.

Gas prices have fallen due to dwindling demand, according to AAA. Prices topped $120 per barrel as recently as June. The current national average is $4.01 per gallon, AAA says. "Oil is the primary ingredient in gasoline, so less expensive oil is helpful," says AAA spokesperson.
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