The stay-at-home orders promulgated by state and local governments drove U.S. demand for gasoline down by around 30% over the six-week period between mid-March and the end of April. A new survey indicates that the gradual reopening of the economy has recouped about two-thirds of that loss.
Analysts at consumer travel company GasBuddy used data gathered daily from Americans who use the firm’s Pay With GasBuddy app to determine how the increased movement of Americans has affected the demand (and, hence, the price) of gasoline.
On April 12, gasoline purchases were down 62%, compared to March 13, 2019, the day last year that exhibited the greatest demand for gasoline. Demand in the last week of April was up 22% compared to the week of April 5, the weakest period for U.S. demand this year.
GasBuddy CEO Sara McCrary explained, “Fuel demand is a significant economic indicator. While April fuel demand was down compared to March, we saw consecutive weekly increases in gallons purchased and the number of active cardholders as the month progressed.”
Average demand for gasoline dropped from 50 gallons per driver in April 2019 to just 39 gallons this past April. The COVID-19 pandemic drove a peak drop of 41% in year-over-year fuel demand during the week of March 29. By the end of April, the decline had shrunk to 31% year over year.
GasBuddy expects demand to continue rising as more states reopen and employees return to work. The analysts even expect summer travelers to begin hitting U.S. highways. School closings for the remainder of the academic year may pull some travel forward.
Some of the nation’s most heavily visited attractions are beginning to reopen. The Wyoming entrances to Yellowstone National Park will reopen on Monday, but social distancing rules and other limitations will remain in force. Disney Springs, part of the Disney World resort in Orlando, Florida, will reopen on May 20, with similar restrictions.
Will gas prices rise? Patrick DeHaan, head of petroleum analysis at GasBuddy, commented, “The increase in fuel demand will heavily rely on how quickly additional states reopen. Given that gas prices will continue to be affordable, we could continue to see weekly single digit increases throughout the month of May, with a significant increase possible if the situation improves more rapidly.”
Gas prices have risen by about three cents a gallon since Monday. Thursday’s national average price is about $1.86 a gallon. Hawaii has the most expensive gas ($3.30 a gallon), while Oklahoma has the cheapest ($1.48). Gas prices exceed $2.00 a gallon in only 10 states.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
