Less than two weeks ago, a gas station in London, Kentucky, started selling regular gas for $0.99 a gallon. Last Friday, the price dropped to a U.S. average of $1.99, and on Monday that average has dipped even more, to $1.97.
Sixty years ago, in March of 1960, the average retail price for a gallon of regular gas was $0.31. Adjusted for inflation, that’s $2.73 a gallon in 2020 dollars. And gas could get even cheaper in the weeks ahead.
Gasoline prices have dropped for 38 consecutive days, according to Patrick DeHaan, head of petroleum analysis at GasBuddy. The nationwide average represents the first time in four years for an average price of less than $2.00 a gallon.
DeHaan commented:
With the nation continuing to be under siege from the coronavirus and millions staying parked at home, there’s quite a bit more downside that’s in the pipeline coming in the weeks ahead. We could easily see the national average fall 50 cents to a dollar per gallon, while pricey states like California will see the biggest drops to come, playing catch up to the drop that has seen twenty-nine states average gas prices fall under $2. Motorists should continue to be vigilant if they need to fill their tanks- bring hand sanitizer and potentially wipes, but also shop around as the gap between station widens to historic levels.
U.S. crude oil production dipped by 100,000 barrels a day last week to 13 million barrels a day, but U.S. commercial crude inventories rose by 1.6 million barrels. Refiners have begun making run cuts to reduce the surplus of gasoline, diesel fuel, jet fuel and other products. A related problem for some producers and refiners is that U.S. storage tanks don’t have much room left to store crude.
According to GasBuddy, the five states where drivers are paying the most for gas are Hawaii ($3.521), California ($3.026), Washington ($2.637), Oregon ($2.610) and Nevada ($2.499). No other state is reporting an average of more than $2.50 a gallon.
The five states where gas is cheapest are Oklahoma ($1.573), Wisconsin ($1.594), Kentucky ($1.661), Ohio ($1.664) and Michigan ($1.676).
Compared to last month, the national average is down nearly 47 cents per gallon, and compared to last year, prices are down about almost 74 cents.
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