U.S. Gasoline Demand Plummets Pushing National Average Cheaper

Illinois $1.96 – Indiana $1.63

06 April 2020

AURORA, Ill., (April 6, 2020) – Today’s national gas price average is $1.92. That is nine cents cheaper than last Monday, 48 cents less than a month ago and 81 cents less expensive than a year ago. On the week, pump prices continued to push less expensive with gasoline demand registering at its lowest point since 1993. The latest Energy Information Administration (EIA) weekly report puts demand at 6.7 million b/d – a nearly 30 year low – and it’s likely to push lower as Americans are urged to stay at home at least until the beginning of May.

“This week, market analysts are watching crude oil prices, which started to increase at the end of last week,” said Molly Hart spokesperson for AAA – The Auto Club Group. “However, given the low demand readings, increases in crude aren’t likely to have an impact on gas prices in the near-term.”

In addition to crude oil, market analysts are also watching refinery rates. The U.S. refinery utilization average is down to 82%, a low not seen since September 2017. Given the drop in crude oil and gasoline demand, which is expected to push even lower, refineries are reducing production in hopes this could help to balance the amount of gasoline supply in the country.

Indiana ($1.17) is one of the five Great Lakes and Central States seeing the largest year-over-year savings in the region and the country with pump prices that are at least $1/gallon cheaper.

 

Monday

Sunday

Week Ago

Month Ago

One Year Ago

National

$1.929

$1.936

$2.013

$2.404

$2.735

Chicago Metro

$2.089

$2.099

$2.171

$2.684

$3.097

Chicago City

$2.319

$2.323

$2.413

$2.922

$3.257

Bloomington

$1.730

$1.734

$1.760

$2.305

$2.714

Champaign

$1.966

$1.979

$2.028

$2.376

$2.633

Peoria

$1.964

$1.978

$2.065

$2.490

$2.678

Rockford

$1.757

$1.771

$1.832

$2.394

$2.720

Springfield

$1.580

$1.603

$1.687

$2.335

$2.733

Fort Wayne, IN

$1.527

$1.538

$1.650

$2.142

$2.810

South Bend IN

$1.425

$1.440

$1.577

$2.114

$2.825

Click here to view current gasoline price averages

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI increased by $3.02 to settle at $28.34 per barrel. Domestic crude prices increased at the end of last week, following news that the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, planned to hold an emergency meeting today to discuss potential crude production cuts amid the global oversupply caused by COVID-19. However, OPEC and its partners have moved the meeting to Thursday, April 9. Crude prices are likely to remain volatile this week until the meeting, where the market will be looking to see if production cuts are enacted and if they are drastic enough to curb the growing oversupply of crude in the global market.

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.

 

 

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