AAA: Gas prices fall by nearly a dollar in El Paso County over the last month; will drop further following Labor Day
EL PASO COUNTY, Colo. (KRDO) -- For the first time in five months, the national average price of unleaded gas has dipped below $4.00 a gallon according to AAA.
On Thursday, the national average hit $3.99, while back in June the price was greater than $5.00.
Here in Colorado Springs, the drop has been sharp. Skyler McKinley, a spokesperson for the AAA's Colorado region, says gas prices have fallen in the neighborhood of ninety cents over the last month.
$3.97 a gallon is the average for gas in El Paso County, according to AAA. While Pueblo County's average is even lower, at $3.74.
AAA says prices are stabilizing across the state and nation, however, prices will continue to fall after Labor Day weekend. McKinley says gas prices fall every year following the holiday.
According to McKinley, there are two primary causes for the recent drop in prices. First, fewer people were traveling due to inflation, and as a result, drivers are staying at home. These behavior changes in the market are causing prices to fall.
The second explanation - fear of an incoming recession.
“The price of a barrel of oil is trading at its lowest point since Russia invaded Ukraine," McKinley said. "It’s trading that low out of fears that the world might be heading into a recession. If we do enter into a global recession, or if we are in one now, prices will fall at the same time. Folks might lose their jobs.”
