Gas prices drop in Alaska and around the U.S.

After reaching a peak in June of this year, gas prices have fallen sharply.
Published: Dec. 13, 2022 at 9:10 AM AKST
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FAIRBANKS, Alaska (KTVF) - In June of 2022, average gas prices peaked in the United States at more than $5 a gallon, considerably higher in much of Alaska.

However, since then, prices have been dropping around the country. According to Jared Bernstein, a member of President Joe Biden’s Council of Economic Advisers, “The price of gas nationally is now down below where it was a year ago, below where it was before Putin invaded Ukraine and you saw a real spike in energy prices.”

Bernstein said prices in the U.S. were at $3.32 a gallon on Friday, December 9. In Alaska, those prices averaged about $3.95 a gallon.

This, according to Bernstein, marks an 80 cent drop in the last month, outpacing the national trend. “Gas there is typically above the national average as I’m sure everyone up there, don’t need me to tell you.”

The Biden administration attributes this price change to a number of factors.

One is the president’s release of 180 million barrels of oil from the Strategic Petroleum Reserve over a number of months. “This is an oil reserve that the president has control of for situations where you hit a very tough supply situation like the one that happened around the time Putin invaded Ukraine,” Bernstein said.

Another factor, he added, is a price cap on Russian oil.

He says for many families, including the household President Biden grew up in, the price of gas makes a big difference in overall economic health. “If consumers can get some breathing room at the pump, this is going to make a big difference for them now,” explained Bernstein.

As for the future, he said the relief to gas prices is at least expected to continue through the holidays.