As Chicagoans prepare for the long July 4 holiday weekend, they will find some relief at the gas pump, with prices significantly lower than a year ago.
Currently averaging $3.65 per gallon in the metro area, gas prices in Chicago are about 45 cents lower than this time last year, which is a notable drop compared to the $5-plus prices seen in 2022.
Patrick De Haan, the Head of Petroleum Analysis at Gas Buddy, highlighted this trend, stating that these are the lowest gas prices for the Fourth of July holiday since 2021.
The decline in gas prices over the last three years can largely be attributed to a “rebalancing” of the market, following a peak in 2022 due to factors such as the COVID-19 pandemic and the ongoing war in Ukraine.
De Haan pointed out that increased gas production by OPEC this year, combined with rising interest rates set by the Federal Reserve, has cooled the economy and led to lower gas consumption.
He explained, “That has slowed global oil consumption, and that’s allowed things to finally rebalance. And that’s why now, for the third straight year, we’re expecting the yearly national average price of gas to decline.”
Despite ongoing conflicts in the Middle East, including recent U.S. military actions against Iranian nuclear sites, De Haan noted that the global impact on oil prices remains minimal.
He added, “The fact is that very few countries consume and buy Iranian crude oil. That’s why the market kind of dismissed the potential of a disruption in the flow of oil because Iran really needs to continue selling oil to fund its budget.”
During summer months, gas price trends typically show a decrease as gasoline supply increases.
If the summer remains free from major disruptions, such as hurricanes affecting refining capabilities in the Gulf Coast region, prices may continue to decline.
De Haan mentioned that recent government reports showed a jump of over 4 million barrels in gasoline inventories last week, indicating a healthy supply for consumers.
David Holt, president of the Consumer Energy Alliance, expressed optimism for motorists this Fourth of July, stating that lower gas prices are a welcome development.
“Everyone’s going to be getting in a car, going to a cookout, or going to see friends. We’re saving a little bit of money because we haven’t seen gas prices this low in the summertime in over four years. So that’s great news,” Holt said.
He attributed the low prices in part to the United States’ position as the number one oil producer in the world.
Historically, geopolitical conflicts or supply disruptions in oil-producing regions have led to spikes in oil prices, but Holt noted that the U.S. production levels and regulatory environment have helped stabilize prices.
Gas consumers in Chicago have shown mixed reactions to the declining prices.
At the Devon Shell station on West Devon Avenue, motorist Walker Brewer, 30, conveyed ambivalence about the lowered prices.
He mentioned, “As a millennial, I remember when gas was far cheaper. And the fact that it’s so politicized makes me unhappy. Like, I don’t love the fact that the economy is tied to the Middle East.”
He expressed concern over feeling grateful for lower prices that are influenced by such geopolitical tensions.
Another consumer, Mac, also 30, noted that she hadn’t yet released any awareness of price changes.
She said, “Hopefully, that’d be great.”
Mac, who preferred not to share her last name, added, “I don’t claim to know a whole lot about how it works, but, yeah, I mean who would be upset with it going down?”
While gas prices in Illinois are decreasing, they remain among the highest in the nation, primarily due to high state taxes.
Patrick De Haan pointed out that Illinois gas taxes recently increased on July 1, which positions the state as having the second-highest gas taxes in the U.S., just behind California.
He remarked, “Here in Illinois, we now have the second-highest gasoline taxes in the nation. Not a title you want to hear, although the good news for motorists traveling out of state is that Chicago is on the doorstep of both Indiana and Wisconsin, where gas prices tend to be a bit lower.”
image source from：wbez
