COVID-19 and the ongoing crude oil price war could lower prices to $1.75 per gallon in April

WASHINGTON, March 31, 2020—The national average for a gallon of regular gasoline dropped below $2 for the first time in four years according to AAA.

Today’s national gas price average is $1.99 per gallon and AAA expects gas prices to push cheaper, with the national price average hitting $1.75 or less in April.

Gas prices in Crestview are at $2.04 per gallon at the Tom Thumb stores and about 30 cents cheaper in Pace.

Decline in fuel costs is due to COVID-19’s chilling effect on the global economy and the crude oil price war between Saudi Arabia and Russia, according to AAA.

“AAA expects gas prices to keep dropping as cheap crude combines with the realities of people staying home and less demand for gas,” said Jeanette Casselano, AAA spokesperson. “Today, motorists can find gas for $1.99 or less at 68 percent of gas stations in the country.”

Across the country, state averages are less than $3 per gallon except in Hawaii ($3.36) and California ($3.05).

Twenty-nine states have regular gas price averages under $2, with Oklahoma ($1.55) having the cheapest in the country.

While demand is diminishing, COVID-19 is not impacting the U.S. gasoline supply.

The United States 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 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 Casselano.

AAA forecasts that until crude oil prices and gasoline demand increase, cheaper gas prices are here for the foreseeable future.

AAA news release