The cost of gasoline has dipped closer to $4 per gallon in dozens of states around the country, a positive sign that prices will keep declining throughout the month of July and Americans will keep saving, White House economic adviser Jared Bernstein said on Monday.
Bernstein spoke to reporters at the White House, showing a chart comparing the decline in the price of oil to the decline in average retail gas prices in the U.S., both trending down overall.
The average price of a gallon of regular gas is now at $4.521 per gallon, according to AAA, but it’s dipped below $4 per gallon at one or more gas stations in 35 states, according to industry tracker GasBuddy.
Bernstein said he wanted to highlight that the decline is “a trend here, and not a blip.”
The Council of Economic Advisers member said gas prices have dropped 50 cents per gallon over the last month, and he expects the decline to continue throughout July.
“We think it's reasonable to expect more gas stations to lower their prices in response to lower input costs and thus — barring unforeseen market disruption — to see average prices fall below $4 per gallon in more places in the coming weeks,” he said.
The average American driver will save $25 per month, he said, and overall Americans are saving more than $190 million per day due to the lowering prices.
“The price of gas is considerably lower in July than it was in June,” Bernstein concluded.
But prices are still far higher than one year ago, when the average price of gas hovered just above $3 per gallon. The cost of a gallon surpassed a record $5 last month, according to AAA.
The Biden administration has consistently blamed Russia’s invasion of Ukraine and its global impact on energy prices, while pointing to federal efforts to boost supply.
President Joe Biden returned this week from a trip to major oil exporter Saudi Arabia, though he implied that his meeting with Saudi leaders may not have an immediate impact on gas prices.
Saudi Arabia is a leading member of OPEC+, the key group of oil-producing countries, which has promised to increase its output in August.
“We will measure success in the next couple of weeks,” said White House press secretary Karine Jean-Pierre.
Concerns remain about whether gas prices will actually stay lower in the coming months, even if they look promising in the next few weeks.
“We’re not doing a victory lap, but this is important,” Jean-Pierre said in response to worries about prices ticking back up again.