Illinois gas prices drop amid recession fears, pre-summer lull: AAA

Illinois gas prices have decreased at the pump compared to a week ago.

CHICAGO - Illinois gas prices have decreased at the pump compared to a week ago.

Illinois drivers are now paying an average price of $3.95 per gallon for regular unleaded gasoline compared to $4.04 last Monday, according to a Monday gas report by AAA.

Monday's state average is about 9 cents less than a week ago, and 64 cents less than this time last year, AAA reported.

The average price for a gallon of regular gasoline dropped to $4.49 in Chicago, a four-cent decrease from the previous week, AAA said. In addition, the Chicago area also saw prices decrease from $4.30 last week to $4.20 on Monday.

HOUSTON, TEXAS - DECEMBER 05: In this photo illustration, a gas pump is filling up a vehicle at a Chevron gas station on December 05, 2022 in Houston, Texas. U.S. gas prices have dropped towards $3 a gallon, with global gas prices having steadily dro

Expand

"The price for oil has dropped nearly $20 per barrel recently to the upper $60s, which has spurred the retreat for gas prices," said Molly Hart, spokeswoman for AAA – The Auto Club Group. "And we are also in a pre-summer driving season lull regarding domestic demand. These two factors should keep pump prices drifting lower for now."

The national average price for a gallon of regular gasoline dropped to $3.57, a six-cent decrease from the previous week, according to a Thursday gas report by AAA.

SUBSCRIBE TO FOX 32 ON YOUTUBE

"The oil market volatility is leading to lower prices," AAA spokesperson Andrew Gross said in a statement. "And we are also in a pre-summer driving season lull regarding domestic demand. These two factors should keep pump prices drifting lower for now."

In addition, gas demand decreased from 9.51 to 8.62 million barrels a day the previous week, AAA reported.

"The drop in demand is more in line with what market observers expected last week," AAA said.

FILE - Gas pumps shown at gas station.

Plus, fears of a recession amid rising interest rates have affected gas prices, AAA said. In fact, the Federal Reserve increased interest rates by another 25 basis points this month, despite recent bank closures and the uncertainty the closures have spread across the industry.

"If a recession occurs, oil demand and prices will likely decline," AAA said.

If you are interested in reducing your monthly auto payments, you could consider switching insurance providers. Visit Credible to find your personalized interest rate without affecting your credit score.

Where’s the cheapest gas?

While gas prices dropped across the nation, some states saw larger decreases than others. These were the states that saw the largest decrease in average gasoline prices, according to AAA: