According to statistics compiled by AAA, the average statewide price for a gallon of regular unleaded gasoline is $4.257, way down from the June average price of $4.632 per gallon.
Prices are 37 cents lower than one month ago. However, they are $1.43 higher than one year ago.
Despite the dip, prices remain in record-high territory. Prior to 2022, the highest average price recorded by AAA was $4.114 per gallon in July 2008
Historically, Alabama's prices are lower than the national average, which continues to be the case, with the national average coming in at $4.678 per gallon.
Alabama has the nation's sixth-lowest average prices, behind South Carolina, Georgia, Mississippi, Louisiana and Texas.
The cheapest gas in Alabama can be found in Lee County at $4.11 per gallon on average. The most expensive is in rural Alabama's Wilcox County at an average price of $4.489 per gallon.
Analysts suggest that despite higher demand during the summer driving season, the current downward trend is a product of the falling price of oil, which is hovering near $100 a barrel.
However, a New York Times story warns the relief could be temporary as European sanctions are set to cut the flow of oil from Russia later this year, which could send the price to a high of $200 a barrel. According to the Times, that translates to $7-per-gallon gas throughout the country.
Last month, President Joe Biden pushed for a gas tax holiday but, with very little support in Congress, the proposal was doomed from the beginning.
Some states are implementing their own gas tax holidays, including neighboring Florida and Georgia.
Georgia has had a gas tax holiday in effect since May, and it will continue through August with surplus American Rescue Plan Act (ARPA) funding making up for the shortfalls.
In May, Florida Gov. Ron DeSantis (R) green-lit a budget that included a month-long gas tax holiday starting October 1, which will lower the price of fuel by 25.3 cents per gallon.
Gov. Kay Ivey has resisted calls to suspend Alabama's gas tax. As recently as last month, Ivey claimed such a move would "cause more harm than good" and cost Alabama taxpayers.
To connect with the author of this story, or to comment, email jeff.poor@1819News.com.
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