It might be an ideal time to fill up your tank as fuel prices have dropped leading into the Memorial Day weekend.
U.S. gasoline prices heading into the long week averaged $3.58 per gallon nationwide on Monday. While this represents a 1% increase compared to the same time last year, after accounting for inflation, which has run rampant in recent years, prices are actually 2% lower, according to the U.S. Energy Information Administration (EIA).
As of Friday, prices nationwide had ticked up slightly to about $3.61 per gallon on average. In Texas, the average price for unleaded is $3.17.
Energy prices spiked from $76 per barrel to a recent high of $91 per barrel on April 5. The jump in prices was at least partly attributed to attacks committed by Houthi rebels in the Red Sea. Mounting tensions between Israel and Iran also pushed prices higher earlier this year, said the EIA.
However, the region has recently seen tensions soften, which has brought energy prices back down.
“Over the past five weeks, Middle East tensions have eased somewhat, and refinery activity has increased, contributing to a 2% drop in average retail gasoline prices. However, events in the Middle East have the potential to quickly change market conditions and add uncertainty to our gasoline price outlook,” read a May 23 statement from the agency.
A recent report by ZeroHedge alleges that the Biden administration is working to reduce gasoline prices as the presidential election approaches. According to the allegations, the administration is draining the Northeast Gasoline Supply Reserve in order to soften prices.
This supply is part of the U.S. strategic petroleum reserves, which are used to bolster the country’s energy supply during an emergency or environmental catastrophe. ZeroHedge claimed that the administration previously drained half of the nation’s reserve in a similar move during the 2022 midterm election.
