Prices at the pump continue to plunge, dropping the U.S. average for gasoline below where it was when Russia invaded Ukraine.
A gallon of regular gas now fetches $3.47 nationally, according to AAA. That is below the $3.54 average on February 24, the day Russia invaded Ukraine.
That is down about 12 cents in the past week and 29 cents in the past month.
And the GasBuddy app that tracks fuel prices predicts that gas prices could drop below $3 a gallon by Christmas.
A nozzle pumps gas into a vehicle in Los Angeles on Aug. 23, 2022.
This week marks the first time since February that the national average has fallen below $3.50 a gallon. Gas prices were climbing in January and February as investors worried about disruptions from a Russian invasion of Ukraine.
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A range of factors have led to the drop in gas prices, and not all of them are positive. Fears of a potential recession and concerns about China's COVID-19 lockdowns have hurt energy prices. Other factors include fewer than expected disruptions to Russia's oil flows and the record-setting release of oil by the Biden administration from emergency reserves.
Although gas prices are still relatively high for this time of the year, they have also completely reversed the spike caused by the war in Ukraine. That spike worsened inflation and set off inflation alarm bells around the world.
The national average is now down by $1.55 since hitting a record high of $5.02 a gallon this past June.
Looking ahead, some forecasters see gas prices continuing to dip, although there remains uncertainty over where oil prices go from here due to questions about OPEC policy and China's COVID lockdowns.
Andy Lipow, president of consulting firm Lipow Oil Associates, says the national average for gasoline could drop to $3.28 by Christmas. That would mean lower prices this Christmas than last.
GasBuddy is even more optimistic, saying this week that gas prices could drop below $3 a gallon by Christmas.
Patrick De Haan, head of petroleum analysis at GasBuddy, said that would be a "huge gift to unwrap for motorists after a dizzying year at the pump."
Rust in peace: Vehicles that are dying in 2023
Acura ILX
Never like the Acura Integra that it replaced, the ILX always seemed like a pretender to the throne. A half-hearted effort on Acura's part dating to 2013, the Acura Integra thankfully takes its slot for 2023.
Buick Encore
Seemingly, there will be no encore for the Encore, a diminutive subcompact SUV that once accounted for half of Buick's U.S. sales. Now it's outsold nearly 3-to-1 by the larger, cheaper Encore GX.
Lamborghini Aventador
Still sexy despite its age, this is the last year for this 12-cylinder supercar, which will replaced by an electrified model within a couple years. While it will be good, it won't be the same.
Mercedes-Benz A-Class
This was Mercedes-Benz's least expensive model in 2022, starting at less than $34,000. That honor now falls to the GLA crossover, at less than $37,000.
Volkswagen Passat
This American-built Passat bore little resemblance to its European counterpart, with little character or superb handling. Unsullied and faultlessly ordinary, it never captured the imagination.
Jeep Grand Cherokee WK
The old version of the Grand Cherokee stuck around as a lower cost alternative to its newer sibling. But the new one is so good, who wants the old one?
Ram ProMaster City
This one always looked kind of odd for a Ram, and that's because it's really Fiat Doblo cargo van. Yet its sales seemed solid, so its demise may mean something better is about to arrive.
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