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Explainer: Why gas prices are falling

The price of regular unleaded gas is advertised for just under $4 a gallon at a Woodman's, Wednesday, July 20, 2022, in Menomonie Falls, Wis. Falling gas prices gave Americans a slight break from the pain of high inflation last month, though the surge in overall prices slowed only modestly from the four-decade high it reached in June. (AP Photo/Morry Gash, File) The price of regular unleaded gas is advertised for just under $4 a gallon at a Woodman's, Wednesday, July 20, 2022, in Menomonie Falls, Wis. Falling gas prices gave Americans a slight break from the pain of high inflation last month, though the surge in overall prices slowed only modestly from the four-decade high it reached in June. (AP Photo/Morry Gash, File)

By Associated Press August 12, 2022 4 min read

U.S. consumers are breathing a bit easier now that gasoline prices have come down from record levels, but pump prices are still high, and the two-month slide could be nearing an end.

The nationwide average price for a gallon of gas dropped to $3.99 on Thursday, according to AAA. That’s down 20% from the mid-June high, and it’s the first time the average has dipped below $4 since early March.

Gasoline prices usually rise and fall with the cost of oil, and crude has also been dropping. The U.S. benchmark price is down nearly one-fourth since early June.

Other factors are also behind this year’s roller-coaster ride in energy prices.

WHAT IS HAPPENING?