Consumers across America are feeling a little less pain at the pump.
The national average for regular unleaded gasoline was $3.82 a gallon as of Aug. 23, according to AAA. The states with the cheapest prices at the pump are Arkansas, Mississippi, and Georgia, clocking in at $3.36, $3.37, and $3.39, respectively, according to GasBuddy.
Lower demand for housing, sparked by higher mortgage rates and material costs, helped push demand for crude oil lower, reducing prices, AAA said. "If crude demand expectations remain low this week, crude prices could decline further."
Though gas prices are still 73 cents higher than a year ago, the drop nonetheless is significant given how inflation has reached its highest levels since 1981. The Biden administration's decision to release millions of barrels of oil from the Strategic Petroleum Reserve in March is credited for helping to lower prices. The move came after the Russian invasion of Ukraine in February, which sparked a run-up in global crude oil costs.
In June, gas prices reached the most expensive in U.S. history — with states such as California, Oregon, and Washington averaging nearly $7 a gallon — and diesel in both the U.S. and Canada hitting almost $10 a gallon.