Gas prices drop slightly as the price of oil declines; the price for a gallon of regular is still hovering around $5

·2 min read
Customers pump gasoline at Costco, W162N9235 Pershing Ave., in Menomonee Falls. After gas prices hit an all-time record high, 
the per-gallon price has fallen slightly in recent days as the price of crude oil has fallen.
Customers pump gasoline at Costco, W162N9235 Pershing Ave., in Menomonee Falls. After gas prices hit an all-time record high, the per-gallon price has fallen slightly in recent days as the price of crude oil has fallen.

The national average for a gallon of regular gas was below $5 on Wednesday.

The price drop from record highs reached earlier this month is "bringing modest relief at the pump for beleaguered drivers," said travel organization AAA in a statement.

While the drop represents a small dose of good news for drivers, gas was still hovering near $5 a gallon in the U.S. and Wisconsin.

The national average price was $4.96 on Wednesday, about a nickel less than a week ago. But that's still 37 cents more than a month ago, and $1.89 more than a year ago, according to AAA.

The average price in Wisconsin was $4.82 a gallon on Wednesday, down 10 cents a gallon from the record high of $4.92 set on June 12.

Gas prices have declined because the price of crude oil has fallen.

More: Tony Evers issues executive order barring price gouging at gas stations

More: Gas prices are at a record high. Should you try to find an electric vehicle to replace your gas-powered car?

The primary cause is the decline in the cost of crude oil, which has fallen from $122 to about  $111 per barrel due to fears of a global recession and its associated economic slowdown.

Nations whose economies are in recession use less energy than those whose economies are growing.

In addition to inflation hurting family budgets, every extra dollar that must be spent on fuel is a dollar that isn't spent for something else, adding to recession concerns.

The price of U.S. crude oil is up about 52% for the year. That has taken a bigger portion of people’s incomes and is prompting a slowdown in spending elsewhere.

Global crude oil prices have been volatile for much of the year, remaining elevated as they see big price swings.

U.S. crude was down to about $105 a barrel in morning trading Wednesday. The price of crude oil makes up nearly two-thirds of the price of a gallon of gasoline.

Here's the average price for a gallon of regular gas in areas of Wisconsin:

  • Milwaukee/Waukesha: $4.97

  • Kenosha: $4.92

  • Sheboygan: $4.80

  • Madison: $4.79

  • Wausau: $4.78

  • Janesville-Beloit: $4.77

  • Pierce/St. Croix counties (Twin Cities metro): $4.77

  • Oshkosh: $4.77

  • Green Bay: $4.73

  • Eau Claire: $4.68

  • Fond du Lac: $4.67

  • Appleton: $4.67

  • La Crosse: $4.62

  • Chicago metro: $5.84

Our subscribers make this reporting possible. Please consider supporting local journalism by subscribing to the Journal Sentinel at jsonline.com/deal.

DOWNLOAD THE APP: Get the latest news, sports and more

The Associated Press contributed to this report.

Contact Joe Taschler at (414) 224-2554 or jtaschler@gannett.com. Follow him on Twitter at @JoeTaschler or Facebook at facebook.com/joe.taschler.1.

This article originally appeared on Milwaukee Journal Sentinel: Gas prices see drop but are still up around $5 in U.S., Wisconsin