COVID-19 and the ongoing crude oil price war could lower prices to $1.75 per gallon in April
DEARBORN, Mich., (March 31, 2020) — The national average for a gallon of regular gasoline dropped below $2 per gallon for the first time in four years. Today’s national gas price average is $1.99. Here in Michigan the average is $1.70 with motorists able to find gas for less than $1.50/gallon at 16% of gas stations. AAA expects gas prices to push cheaper by at least another quarter in April.
The decline is due to COVID-19’s chilling effect on the global economy and the crude oil price war between Saudi Arabia and Russia. Crude has plummeted to $20/bbl – a closing price not seen since 2002. For the last 52 weeks, crude oil (West Texas Intermediate) has averaged $56/bbl with the national pump price average at $2.63.
“AAA expects gas prices to keep dropping as cheap crude combines with the realities of people are staying home and less demand for gas,” said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. “While demand is diminishing, COVID-19 is not impacting the U.S. gasoline supply.”
In fact, the U.S. has an unusual amount of winter-blend gasoline still available for this time of year. This caused the Environmental Protection Agency to extend the sale of winter-blend past the May 1 deadline to May 20. The agency said they would continue to monitor and may extend the waiver again.
“The EPA’s extension of the winter-blend gasoline waiver will contribute to sustained lower prices, especially as U.S. gasoline demand readings look more like winter-driving season than spring,” added Woodland.
AAA forecasts that until crude oil prices and gasoline demand increase, cheaper gas prices are here for the foreseeable future.
For those motorists who are not driving, AAA offers these car care tips for longer-than-expected parked vehicles:
- Battery Boost. If possible, use a Battery Tender or other maintenance-type battery charger to keep the battery at a full state of charge and prevent deterioration. The Battery Tender should remain connected to the stored vehicle.
- Fuel Stabilizer. If gas is going to sit in the vehicle’s tank for more than a few months, particularly gasoline that contains ethanol, AAA recommends using a treatment designed for fuel stabilization such as STA-BIL®. Anyone can do this, and it is as simple as fueling up a vehicle. Fill the gas tank to help minimize condensation and drive the car for five to ten miles to ensure that the stabilized fuel circulates throughout the fuel system.
- Tire Pressure. Add 10 psi of pressure to each tire to help prevent flat spots from forming on the tires. This occurs when the area of the tire touching the ground becomes rigid due to sitting in one position for an extended period. You can also move the vehicle periodically.
- Windshield Wiper Placement. Prop up the wiper arms so the blades are off the windshield and won’t get stuck to the glass.
- No Parking Brake. Don’t use the parking brake when storing the vehicle. The brake could become frozen, and the brake pads could rust to the rotors, or brake shoes could distort the drums. With an automatic transmission, simply place the vehicle in park. If the car has a manual transmission, put it in first or reverse gear and use wheel chocks to help hold the vehicle in place.
AAA in Michigan celebrated its 100th Anniversary - A Century of Service in 2016 and has over 1.4 million members across the state. It is part of The Auto Club Group (ACG). Connect with us on Facebook and LinkedIn.
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, banking, financial services, and travel offerings to over 13.5 million members across 13 U.S. states, the province of Quebec and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Carolina, North Dakota, Tennessee, Wisconsin, Puerto Rico, South Carolina and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.