Gas Prices Could Break Below $3 Just in Time for Election
Gas prices could hit below $3 before this year's presidential election on November 5 as demand continues to decline and companies turn to their winter fuel grades.
The national average gas price was $3.22 on Friday, but lower fuel demand could see prices reach below the $3 mark in the coming weeks. A month ago, the average gas price in the United States stood at $3.40, but the last year has seen a steady decrease from $3.87.
"Gas prices are falling because economies around the globe are slowing," Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek. "Slowing economies lead to lower oil consumption and more supply on the market."
Thompson added that prices will likely fall as many companies switch from summer driving grade gasoline to the winter blend, which is cheaper to produce.
Because Vice President Kamala Harris , the Democratic presidential nominee, is currently in office alongside President Joe Biden , the lower gas prices could lend Democrats some support as voters prepare for this year's election.
Republicans, like former President Donald Trump , the GOP's presidential nominee, have long criticized the Biden administration's response to the inflation Americans are currently facing on everything from gas to groceries to housing.
Presidential approval can often be correlated with gasoline prices despite the actual prices reflecting the industry's larger supply and demand instead of any policies enacted by the president.
"Presidents don't control gas prices," Michael Ryan, a finance expert and the founder of michaelryanmoney.com, told Newsweek. "I've seen plenty of them try to take credit or dodge blame over the years. The reality is, it's a global market with way too many moving parts for any one person to control."
So far this year, supply has improved, pushing pump prices lower.
"Summer road trips are winding down, and folks aren't hitting the highways as much," Ryan added. "At the same time, oil production is ramping up in several countries."
Overall, consumer prices fell 2.5 percent in August from the year before, according to the U.S. Labor Department. And gas prices in particular were down 10 percent for the same period.
Some swing states are noting extremely low prices and have already reached sub-$3 levels. In North Carolina, prices were $2.91 on Friday, and Wisconsin saw $3.038 the same day.
National diesel prices also averaged $3.593 Friday, down roughly a dollar from $4.585 a year ago.
The psychological impact of gas prices falling below $3 could be huge for voters, Ryan said.
"It could sway some fence-sitters or give a last-minute boost to voter turnout," he said. "Most folks have already made up their minds about who they're voting for. But don't underestimate the power of feeling good about your wallet when you walk into that voting booth."
Still, Thompson said the lower prices are unlikely to sway voters this election, as they are primarily voting based on other factors.
"I truly do not believe anything could impact the election at this point, outside a Black Swan event," he added. "People have made up their minds, and gasoline prices should not push the election in any one direction."
