Drivers May Receive a Holiday Bonus on Gas Prices

In June, the average cost of a gallon of gas in the US hit $5 for the first time ever. By Christmas, one industry watcher is predicting a milestone in the opposite direction—gas under $3 a gallon. GasBuddy says a price of $2.99 is possible before the new month is out, reports the Hill. The prediction comes with the current average price undergoing a steady decline of late. AAA pegged it at $3.47 on Thursday, which Axios notes means it is now cheaper than when Russia invaded Ukraine in late February.

“People are realizing that they might be back to spending $50 to fill their tank instead of $80,” Emma Rasiel of Duke University tells the Washington Post. “It is the main signal consumers notice on inflation. It is the one thing they are likely to track, how much it has gone up or down, because every week they need to fill up their car.” However, the Post and CNN note that not all of the factors behind the recent decline are positive: One, for example, is that demand for oil and gas is falling as nations brace for a recession. Another is that drivers pinched by higher mortgage payments might be cutting back on driving. (More gas prices stories.)