The national average price of gas is expected to drop below $3 per gallon soon for the first time since May 2021. This drop in prices allows drivers more purchasing power at the pump, with $20 now buying about six gallons of gas compared to just four gallons in June 2022 when prices peaked at $5.02 per gallon. Gas prices vary widely by state, with 20 states already paying less than $3 per gallon, while three states still have prices above $4 per gallon.
While $3 gas may not seem cheap after two years of high inflation, the comparison of gas prices to wages can provide insight into affordability. In September 2024, the average worker earns $30.33 per hour, and it now takes about 40 minutes of work to earn $20, which can buy a little over six gallons of gas at the current national average price. This is comparable to 41 minutes of work in 2019 and 43 minutes in 2004 when gas prices were lower.
The affordability of gas is measured by comparing the price of gas to wages over time, rather than simply looking at the price of gas itself. Despite the roller coaster of the last few years, it appears that gas prices have hardly changed at all when considering wage increases. Gas prices are expected to continue dropping, providing relief to drivers at the pump.
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