Gas prices nationwide have plunged to their lowest level since February as demand has dropped from peak summer travel season and the price of crude oil has fallen.
Despite the recent price dip, the cost of gas remains elevated -- roughly 3% above a $3.38 national average one year ago, according to AAA data.
The decline in gas costs owes in part to a fall-off in demand as weather has cooled and Americans have dialed back travel, industry analysts told ABC News. "In North America, there is a summer driving season when demand is particularly high and refineries are running all out," Pavel Molchanov, a senior energy analyst at Raymond James, told ABC News. "In the fall and winter, demand cools off."Frederic J. Brown/AFP via Getty Images
In addition to a drop in demand, gas prices have benefited from a decline in the cost of crude oil, allowing refineries to generate fuel at lower prices.The fall in oil prices -- which are set on a global market -- has stemmed from discussions at the European Union on a plan to place a price cap on Russian oil, analysts said.
The compromise measure would limit the oil revenue enjoyed by Russia as it wages war against Ukraine, but would also allow for the continued purchase of Russian oil, boosting global supply and pushing down prices.
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