US gas prices fall below $4 as inflation persists

The national average price of regular gasoline fell below $4 a gallon Tuesday for the first time since July, offering drivers relief even as rising food and housing costs kept pressure on household budgets.

AAA put the average at $3.98 a gallon, down 38 cents over the past month, according to NPR. NBC News cited an average of $3.97, down from $4.14 on Election Day. The small difference did not change the broader picture: Pump prices have dropped sharply, but they remain high by historical standards.

NBC News reported that gasoline still costs more than 30% more than it did when the United States and Israel launched the war with Iran on Feb. 28, and roughly 40% more than at the start of the year. NPR said prices are at a record high for this time of year, about $1 a gallon above their level when the war began.

Cheaper crude oil, the switch to less expensive winter-blend gasoline and a seasonal decline in driving demand have all contributed to the decline. CBS News reported that federal rules require stations to sell summer-blend fuel from June 1 through Sept. 15; winter blends cost less to produce. On Tuesday, Brent crude, the international oil benchmark, traded around $91 a barrel, CBS News reported. NBC News said it briefly dipped below $90.

President Donald Trump has played down the prospect of expanding the war with Iran. “I don’t think there’s any reason to,” he told CBS News’ “60 Minutes” when asked about escalation. NBC News reported that he said Monday there was “positive momentum” in talks and a “good chance” the war could end, while adding that U.S. forces were “locked and loaded” if circumstances changed. Gregory Brew of the political risk consultancy Eurasia Group called a deal “unlikely,” CBS News reported, saying neither side had shifted its negotiating position.

Patrick De Haan, a petroleum analyst at GasBuddy, told NPR the national gasoline average could reach $3.75 by Thanksgiving “so long as we don’t get any wild cards geopolitically.”

Diesel has also become cheaper, though it remains costly. AAA figures cited Tuesday by NPR and NBC News put the national average at $6.15 a gallon; CBS News reported $6.16. NPR reported that damaged Russian refineries have curtailed diesel exports, adding to supply pressure from the Iran war. Higher diesel costs can raise the price of goods transported by truck, train or ship. “You’re starting to see higher freight costs get passed through,” RBC Capital Markets economist Mike Reid told NPR.

The broader inflation picture remains difficult for consumers. The Labor Department reported Tuesday that consumer prices rose 0.4% in October from September, more than forecasters expected, according to NPR. Housing accounted for about a third of the increase, while food prices rose 0.5% after holding steady in September, CBS News reported.

The report lacked its usual year-over-year comparison because government price checks were suspended during last year’s shutdown, NPR reported. Falling prices at the pump, for now, have not translated into falling prices across the economy.