Eleven States Have Gas Price Average of $2/Gallon or Less
With crude oil prices at $30 per barrel, Americans are seeing pump prices plummet across the country, reports AAA. On the week, gas price averages in 35 states decreased by double-digits, pushing the national average to $2.25, the cheapest price point of the year. The national gas price average is 13 cents cheaper on the week and nearly 20 cents less than the beginning of the month. AAA expects gas prices to continue trending cheaper, with the high likelihood of the national average hitting $2/gallon before the end of March.
Some of the largest weekly pump price savings in the country can be found in the Great Lakes and Central states region which includes Nebraska, Iowa and Minnesota. All three states report pump prices have dropped an average of 15 cents a gallon at the retail level during the past week.
During this uncertain time of COVID-19, gas prices are declining despite increasing gasoline demand and decreasing U.S. stock levels. The lowest prices in the country were reported in Oklahoma where the state average for unleaded is $1.92 a gallon. The county of Craig County, OK reports a county average of $1.73 a gallon.
- The nation’s largest weekly decreases were reported in: Ohio (-27 cents), Kentucky (-21 cents), Michigan (-21 cents), Wisconsin (-21 cents), Indiana (-19 cents), Illinois (-19 cents), Oklahoma (-15 cents), Nebraska (-15 cents), Iowa (-15 cents), Maine (-15 cents) and Minnesota (-15 cents).
- The nation’s top 10 least expensive markets are: Oklahoma ($1.92), Texas ($1.96), Mississippi ($1.96), South Carolina ($1.97), Ohio ($1.97), Indiana ($1.97), Missouri ($1.98), Kentucky ($1.99), Louisiana ($2.00) and Alabama ($2.00).
Oil Market Dynamics
Fears about COVID-19 and the crude price war between Russia and Saudi Arabia pushed crude prices lower last week. After President Trump announced that the U.S. Department of Energy would purchase oil to top off the Strategic Petroleum Reserve, crude prices rallied briefly. However, the announcement is unlikely to help increase crude prices further since the limited number of barrels the U.S. could purchase is small when compared to the dramatic reduction in global crude demand as a result of reduced economic activity due to COVID-19.
Moving into this week, crude prices are likely to continue decreasing as the world grapples with how to contain the ongoing international public health crisis and associated economic challenges that could lead to a global recession. Until the price war ends and fears about COVID-19 subside, domestic crude prices are likely to remain low.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
For more information on fuel prices including weekly commentary and color-coded county maps for each state, visit www.gasprices.AAA.com.
About AAA - The Auto Club Group
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.