The national average price for a gallon of regular gasoline fell to $1.91 on Monday, down by 5.7 cents week over week. The lowest prices in the country have dipped to $1.30 or below.
Gas prices have dropped below $2.00 a gallon in 40 states. More than 110,000 gas stations across the country were selling gasoline for less than $2.00 a gallon on Monday, and nearly 20,000 were selling it for less than $1.30 a gallon, according to a recent report from GasBuddy. The most dramatic price changes have occurred in the Midwest, where getting refinery output shipped to other parts of the country is challenging.
Surging crude oil prices rose more than 30% last week, with the biggest gain coming on Thursday on news that the Saudis and Russians would begin discussions on limiting production. A meeting between the two scheduled for Monday has been postponed and has caused crude prices to move down.
West Texas Intermediate (WTI) crude oil traded down about 3.9% Monday morning to $27.17, after dipping to $25.91 on Sunday. International benchmark Brent crude traded down 2.8% at $33.14.
Patrick DeHaan, head of petroleum analysis at GasBuddy, commented:
The national average continues to fall as every state has seen yet another decline in average gas prices over the last week as overall oil demand remains constrained due to COVID-19. … If there is an oil production cut, it may establish a floor to oil prices, but motorists need not worry–if there is a cut, it is highly unlikely to cause a surge in gas prices, as retail prices have not come close to matching the declines in wholesale prices to this point.
The five states where drivers are paying the most for a gallon of gas are Hawaii ($3.37), California ($2.96), Washington ($2.63), Alaska ($2.62) and Oregon ($2.55). Only 18 states are reporting an average of more than $2.00 a gallon.
The five states where gas is cheapest are Oklahoma ($1.47), Wisconsin ($1.48), Kentucky ($1.56), Ohio ($1.57) and Michigan ($1.59).
Compared to last month, the national average is down about 45.2 cents per gallon, and compared to last year, prices are down about nearly 82 cents.