The national average price at the pump for gas has fallen below $4 a gallon for the first time in many months. That’s good news for motorists, but even better for the hapless Joe Biden. The lower energy prices have slowed the pace of overall inflation – which still stands at 8.5%.
This hasn’t happened because Biden has suddenly reversed his crusade to “close down” oil production in America.
Gas prices have come down because demand has stalled out. As our staff economist E.J. Antoni explains:
The chart below shows how much gasoline demand has collapsed this year. This summer gasoline consumption fell below the corresponding pandemic-era level and was 1 million barrels per day below the corresponding 2019 level. It was almost that far below last year’s level too – when the pandemic was still happening. As gasoline sales normally ramp up during the summer driving season, they actually trended down this year, perhaps because many families just couldn’t afford to fill up.”
Remember also: gas prices have to fall another $1.50 a gallon to get back to where they were when Trump left office.